Can Constructive Dismissal Happen Due to Breach of Employment Contracts?
Constructive Dismissal
An employee’s decision to resign from their job in response to a fundamental breach of contract could qualify as constructive dismissal. Such a breach could include an employer cancelling the contract’s benefits, eliminating defined job responsibilities, reducing the employee’s pay, arbitrarily suspending them without pay, or changing the terms of employment significantly and unilaterally. Other examples of such a breach of implied conditions could include demoting an employee or changing the reporting function within a company hierarchy, or making changes to working hours or work location.
These are fairly stark examples of a fundamental breach of employment contracts, and it is important that an employee seek legal advice or file a grievance in the event of such a violation. However, more subtle forms of behaviour could also trigger a claim for constructive dismissal, such as singling out an employee for constant criticism at meetings, demeaning their work in the presence of coworkers, or otherwise breaking trust and confidence in the workplace. Such conduct would likely justify an involuntary resignation if it was done on a regular basis or over an extended period of time.
To qualify as a constructive dismissal, an involuntary resignation must be in response to intolerable working conditions and must be caused by a breach of either express or implied employment contract terms. While minor adjustments to work schedules, job duties, and reporting functions may be acceptable, it is generally not possible for employers to change these employment terms in such a manner as to constitute a fundamental breach of contract.
Can Constructive Dismissal Happen Due to Breach of Employment Contracts?
Moreover, a claim for constructive dismissal lawyer near me can only be made within a reasonable period of time after the employer’s fundamental breach of contract. If an employee does not resign during that window, they will have been considered to have “condoned” or “acquiesced” to the employer’s change and thus lost their right to a wrongful termination claim.
A person can still resign in the face of a fundamental breach of contract, but it is important to seek legal advice and to act promptly. An experienced wrongful termination lawyer can help a person navigate the complex legal process of filing a claim for constructive dismissal.
It is also helpful for an employee to keep a detailed record of incidents and situations that could lead to a constructive dismissal claim. By maintaining a written record of these instances, an employee will be more likely to be able to prove that a breach took place and that it was the motivating factor for their resignation. They can then take the next step, which is to explore other employment opportunities. Taking the time to update their resume, network, and seek out new career options can also have positive effects on an employee’s mental health and wellbeing. They can also benefit from the added financial stability of having another source of income while they search for a new position. It is also worth noting that whistleblower laws protect workers who resign in the face of unlawful retaliation for reporting illegal activity, sexual harassment, worker safety violations, and more.
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