Types of Constructive Dismissal
Only actual conduct by the employer and not the perception of that conduct by the employee, can potentially support a constructive dismissal claim. In other words, the employee's subjective opinion or personal reaction to the change is irrelevant. What is relevant is whether, from an objective standpoint, the change to the employment relationship was fundamental in nature.
In practice, only certain types of conduct by the employer has been held to constitute constructive dismissal in law. These include:
- a transfer involving a significant geographic relocation. For example, a transfer from Toronto to Montreal could well represent a constructive dismissal, whereas a relocation from Scarborough to Mississauga would almost certainly not constitute a fundamental change to the employment relationship;
- a fundamental demotion involving reduced responsibilities and/or positioning within the corporate hierarchy;
- reductions in salary, bonus and/or employee benefits.
It should be considered very carefully before any action is taken.
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