Explanation of Constructive Dismissal

When the term constructive dismissal is used it typically refers to a situation in which an employer has not directly fired an employee but has changed the terms of their employment in such a way that the employee feels they cannot work under the new circumstances and must resign. The law on this matter is very complex, and a wrongful termination lawyer would be required to review the facts of any particular case to determine whether there is merit in making a claim for constructive dismissal.

In general, an employer will have the right to change the fundamental terms of an employee’s contract (such as working conditions, salary, or compensation) if they explicitly state such a right in the contract itself. However, in other cases there may be an implied right to make such changes based upon the circumstances of each individual situation. In either case, an employee who feels that they have been forced to resign because of the intolerable changes made by their employer could have a valid Constructive Dismissal claim.

The legal test is that a reasonable person in the employee’s position would feel compelled to resign due to the intolerable working conditions created by their employer. This can include being demoted, having a cut in salary, having their working hours reduced to the point where it becomes untenable, being reassigned to menial or degrading work, being forced to work with a younger supervisor (for age discrimination claims), or any other circumstance that makes continuing to work at the workplace intolerable.

An Explanation of Constructive Dismissal

It is important to remember that a claim for constructive dismissal lawyer can only be successful where it is shown that the employment relationship had been terminated by the employer in some way that is not expressly stated in the contract. Hence, it is very important to keep records of any incidents of misconduct by the employer and to seek legal advice early on in the process, preferably from an experienced employment lawyer.

Employers may sometimes demand employees to work under unreasonable schedules or require them to relocate without reasonable justification. If such demands significantly disrupt the employee’s personal life or create undue hardship, it may amount to constructive dismissal.

Proving constructive dismissal can be challenging, as it requires demonstrating that the employer’s actions or omissions were serious enough to justify the employee’s resignation. In many jurisdictions, employees considering constructive dismissal often have to exhaust internal grievance procedures or attempt to resolve the issues with the employer before seeking legal recourse.

This Fact Sheet is designed to give a broad overview of the issues involved in a claim for constructive dismissal. However, the issues are complex and the law in this area is often changing. This and our ‘Unfair Dismissal’, ‘General Protections Dispute – Termination Claim’ and ‘Notice of Termination’ Fact Sheets should be read together in order to understand the issues and how they apply in practice. Seek further assistance from JobWatch, your union or a wrongful termination lawyer before proceeding. Only around 5% of constructive dismissal claims succeed in winning compensation at an employment tribunal.