adminConstructive Dismissal
Most jobs in Canada are at-will and employees can be fired at any time without cause. However, if an employer cannot fire someone they may try to force them to leave by making changes in their work environment that make it intolerable. This is known as constructive dismissal and it can be a breach of employee rights and wrongful termination.
A constructive dismissal can occur when an employer imposes significant and unilateral changes to essential employment terms such as job duties, reporting functions within the company hierarchy, working conditions, salary and benefits, or workplace location without an employee’s explicit consent. These changes are a fundamental breach of an employment contract and are enough to render the position intolerable such that an employee feels they have no choice but to quit their job.
The definition of “significant” and “unilateral” changes is broad, and the court will assess each case on its own merits. However, a decrease in salary or an increase in commuting times would be examples of changes that could potentially qualify as constructive dismissal. It is also important to note that these types of changes must be made over a period of time and be consistent.
Can Constructive Dismissal Occur Due to Changes in Company Policies?
However, there are a number of ways that an employer can make themselves susceptible to claims of constructive dismissal due to a hostile work environment. Examples include permitting, or at least turning a blind eye to, sexual harassment, bullying, or disparagement by one of their co-workers; unilaterally changing the terms of employment contracts, particularly if they conflict with an express term in the contract; and giving workers an excessive workload and expecting them to meet unrealistic sales targets that are nearly impossible to achieve, causing them to become ill from stress and exhaustion.
In many cases, a change in workplace conditions can be accompanied by verbal and/or physical abuse. While this may not be a direct breach of an employment contract, it can still amount to constructive termination as it is unnecessarily detrimental to the employee’s work-life balance and well-being. Examples of this type of conduct include singling out a worker with criticism in front of the entire team, verbally bullying or belittling them in front of others and/or failing to protect an employee from harassment or discrimination at work.
It is critical that employees who believe they have been constructively dismissed seek legal advice as soon as possible as there are strict time limits for taking action. A Toronto employment lawyer can assist with understanding your rights and determining whether you have grounds to sue for damages such as severance pay and loss of earnings. Contact us today for a free legal consultation. We can help you navigate the complicated world of employment law and get back on track. We offer bilingual services and can accommodate clients with disabilities and special needs. Our offices are conveniently located in downtown Toronto. We serve all of Ontario. Please call or email for a confidential consultation. We look forward to hearing from you.
