What is Constructive Dismissal? | Meaning & Definition | Akrivia HCM

Constructive dismissal is the dismissal that happens when an employee is either forced to leave his/her job by being dismissed by the employer or by quitting. In most cases, the employee resigns due to unreasonable changes in the terms and conditions of his employment. This condition places an employee in a difficult position. He must choose between keeping his job and accepting what he considers unreasonable changes or losing his job altogether because of staying on to continue pursuing the grievance.

The law recognizes constructive dismissal only when the actions of the required notice of termination are so bad that a person would reasonably be expected to resign.

Examples of such actions include:

• Cutting back on benefits.
• Increasing the employee’s work hours without providing additional compensation.
• Significant changes in job responsibilities.

In Canada, there are two avenues for employees to pursue constructive dismissal claims:

1. If the matter is still with the employer, then an internal grievance procedure is under contract/policy.
2. If you leave due to constructive dismissal and you resign from your job, you may file a complaint with the labour board alleging constructive dismissal.