What is Constructive Dismissal?
Constructive dismissal is a very unfortunate by-product of an employment relationship gone sour. It occurs when an employee is unwillingly forced into quitting their job. Workplace harassment, bullying, an unreasonable work load or a toxic work environment are all examples of situations that cause this to occur.
Without doubt, this is one of the most emotionally charged areas of employment law. It is an ugly picture of corporate culture and human relationships at their worst. If you have not already quit your job, we would advise you not to until you have consulted with us. We will coach you on communicating with your employer and what to document in writing.
In some cases, we may be able to resolve the problem for you.
Unwilling Resignations
If nothing works, we can trigger a “no cause” termination, allowing you to leave with a proper severance package in your pocket. For most employees, this works out to be cheaper, faster and less exhausting than the hassle of taking a constructive dismissal case to court.
A constructive dismissal case can only be filed after you leave your job. We advise our clients to pursue this as a last resort. If your hand was forced into a resignation, then you need the most experienced employment lawyer on your side. We must review your circumstances carefully to establish a case of constructive dismissal.
Unilateral Changes to Compensation Packages
This usually causes the most dramatic rupture of employment relationships. During tough economic times, employers start looking at their largest expenses for cost savings. Often, this is payroll. They use the excuse of economic downturn to justify job layoffs or wage cuts. When they impose a reduction of 10% or more of your income, our courts consistently hold steady. Your employer cannot unilaterally change your compensation package. If wage reductions are necessary for the survival of the business, then they have to provide you with options. Either equivalent “considerations” in exchange of the wage cuts, such as more vacation time, signing bonuses, reduced hours etc. Or an adequate severance package in the event the you do not accept the considerations.
Changing Employment Terms
This sometimes occurs when new owners take over a company with existing employees. They start announcing the “new order” and all of a sudden the terms of your employment change. This includes seniority, job descriptions, location, hours of employment, etc. Once again, your employer cannot unilaterally change the terms of your employment. It does not matter whether the terms are part of a written contract or not. If these changes negatively impact you, contact us. You will require legal representation to manage this situation. For a successfully claim, you must protest the change in writing within a reasonable time. Otherwise the courts may find you have implicitly accepted the change.
Returning to Work From Sick
You will be most susceptible to workplace harassment and possibly a constructive dismissal after returning to work following a medical leave. This is when some employers start comparing you to the person who filled in for you. Your manager may unnecessarily scrutinize you for not being fully productive and up to speed right away, especially if you returned without a prescribed gradual return or accommodation plan from your doctor. Consequently, your supervisor could demote you, subject you to an unreasonable workload or expose you to underhanded harassment. Your working environment becomes “toxic”. And this forces you to quit. These classic hallmarks of a constructive dismissal play out time and time again. Employers often understand the law. But they count on the fact that many workers do not understand their rights.
Maternity & Parental Leave
Without doubt, pregnancy and parenting affect the productivity of our fast-paced and competitive workplaces. They require accommodations. While most women can comfortably work through their pregnancy, they must remain healthy as well as productive on the job. New parents frequently require time off to care for sick infants. And they also fall ill more often from viruses their kids bring home from daycare and school. In an inconsiderate environment, you could face undue harassment while pregnant, during parental leave or shortly upon your return.
Bullying & Harassment
Employers who condone or engage in bullying, discrimination or workplace harassment will likely play an active role in your constructive dismissal. Victims of sexual harassment usually face the same fate. Did your situation get worse after informing your HR department of the unpleasant incident? If so, you are being targeted for dismissal. Other situations include being passed up for a promotion or pay raise specifically due to discriminatory practices. In these situations, you need to hire a reliable team of Toronto employment lawyers to ensure the outcome falls in your favour.
Every case we manage is unique and distinctive to the circumstances of our clients. But we see a common theme in all. Our clients lack knowledge about their employee rights and entitlements.
We level this playing field
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