Constructive dismissal is the situation wherein it becomes unbearable for the employee to work. For instance, the employer makes work conditions unbearable so that the employee is forced to quit working. In constructive dismissal, the employer has slowly pushed the employee out of the company.
Most employees quit in most cases due to drastic changes in their work conditions and employment contract. The employee will thus face an impossible dilemma that may force them to either accept the unreasonable change and keep the job or lose the job.
Such breach of contract by the employer may occur as one serious incident or a number of lesser incidents taken collectively which have caused conditions of work to become unbearable.
Constructive dismissal is recognized by law if the actions of the employer are of such seriousness that no reasonable person in the employee’s shoes could be expected to take otherwise. The most commonly known grounds for constructive dismissal are:
Constructive dismissal is generally reserved for full-time employees rather than independent contractors or persons working on their own account and, in some jurisdictions, is only available if the employee had been under that contract of employment for two years or more. In order to establish a case of constructive dismissal, the employees are required to show that they resigned in response to serious breaches of their employment contract and did not accept those breaches when continuing under the new conditions.
There are many things an employer may do to prevent constructive dismissal claims:
1. Maintain open communication: Employees should be encouraged to discuss their problems and grievances fairly before that matter becomes cumbersome and attracts legal proceedings.
2. Problem resolution in a time-friendly manner: The issues and grievances of the employees brought forward to be dealt with by the relevant authorities within a time frame so that such problems are resolved before it becomes a problem situation and later seeks legal recourse.
3. Policy clarity: All the employees have to be totally aware of the conduct, performance, and grievance procedure within the work environment.
4. Supportive training: Teach Managers properly so that they treat employees with support and care related to employee relations.
5. Documentation should be treated seriously: Record every performance of the employees and complaints along with the action taken and issued against them.
Wrongful dismissal is when an employer terminates the contract of an employee on unjust cause and fires them. On the other hand, constructive dismissal refers to when a worker resigns through intolerable working conditions created by the actions of the employer. Here, in wrongful dismissal, a worker’s contract is straight away terminated whereas, in constructive dismissal, a worker resigns owing to circumstances that force a worker out.
Constructive dismissal, of itself is not unlawful. However, illegal acts on the part of an employer may lead to constructive dismissal such as discrimination or violation of labor laws. Employees who consider that they have been constructively dismissed may have a solid case in court if they can prove that their employer has committed a repudiatory breach of contract.
Indian employees can take the employer to the labor court for wrongful termination. There are provisions in labour laws that even protect workers from wrongful dismissals, and so the workers can have a case filed against the employer if they feel the termination has violated the labour laws or the terms of the contract.
Let’s Recruit, Reward, and Retain
Your Workforce Together!
