The term “Constructive Dismissal” commonly refers to a situation where an employee resigns, or is thinking of resigning, after significant changes were unilaterally made to essential terms and conditions of their employment agreement, without their consent. Some of the changes can include a decrease in wages or bonus structures, a demotion in title or authority, altered duties and responsibilities, and intimidation, harassment and bullying.
When employers engage in this type of conduct, employees often feel as though they have no choice but to resign. What most employees don’t know is that these unilateral changes to the employment contract can be legally considered to be a breach of contract or a constructive dismissal.
Change in authority, responsibilities or duties or demotion
Has the employer fundamentally changed your job description? Are you now doing the work of two employees? Or have you had your job duties reduced so much that you no longer feel challenged or engaged in the position you were hired to do? Do you no longer have anyone reporting to you? Do you now report to a co-worker who used to report to you? These are some examples of constructive dismissal.
These types of changes often end with a significant reduction in salary or benefits. It can be a difficult transition for the employee. Other times, a reduction to or change in duties and responsibilities may not accompany a reduction in salary. Whatever the case may be, you may have been constructively dismissed. You should consult with a lawyer prior to resigning as the law on constructive dismissal is gray and tricky, so get good legal advice prior to making any major decisions.
Bullying, harassment and intimidation
An employee is who systemically being bullied or harassed in the workplace, by either a manager or a co-worker, may have a case of constructive dismissal against the employer. You have the right to work in a safe and harassment-free workplace. Your employer also has a legal obligation to prevent workplace harassment and bullying within the workplace. If the conduct is so egregious that you feel you must quit after having reported it to the employer and the conduct continues, you may have a case of constructive dismissal against the employer and a potential human rights complaint under the human rights legislation in Alberta.
Reduced compensation
Employers in a tough economy do have the right to review and adjust compensation for their employees with reasonable notice. A reduction in hours, salary, commission, benefits or bonus structure does not automatically result in a constructive dismissal and each case is fact specific. It’s best to consult with an employment lawyer to get good advice. Contact Kim Nutz for a summary advice consultation to understand your rights.
