What are Constructive Dismissal Claims and What Should Employees Know?
Constructive dismissal claims in Ontario occur when an employer makes a significant change to the fundamental terms and conditions of an employee’s contract unilaterally (without the employee’s consent), leading the employee to involuntarily resign in protest. As some of the examples below illustrate, this can often feel like an employee is being pushed out by their manager or boss, without a formal termination letter or severance package.
If you are an employee, it is crucial to recognize the signs of constructive dismissal to protect your employee legal rights and interests. And if you are an employer, doing so can help you minimize the risk of costly constructive dismissal claims.
Examples of Constructive Dismissal Claims in Ontario
Understanding constructive dismissal claims in Ontario involves recognizing specific instances that might qualify based on legal standards and caselaw. Below are examples that could amount to constructive dismissal under the law if they occur without your consent and significantly alter the terms and conditions of your employment contract:
Are you an employee:
- being pushed or forced out of your job?
- experiencing unfair changes at work involving your job title and responsibilities, such as being assigned duties significantly different from your job description?
- recently experienced a demotion?
- experiencing workplace harassment or discrimination, which has resulted in a hostile, toxic or unsafe work environment?
- pressured to accept a significant change in your compensation, such as a reduction in your salary, hourly rate, commissions, bonuses, benefits, or pension contributions not agreed upon (e.g., 40% or more)?
- asked to relocate to another location far from your current place of work?
- subjected to unwarranted disciplinary action, such as suspension without pay or a performance improvement plan with unrealistic or unattainable targets, that are not justified by any wrongdoing?
Are you an employer:
- who needs to reorganize your current workforce personnel because of financial issues, including placing some employees on an unpaid temporary layoff without permission in an employment contract, which the employee claims is affecting their job security and income?
- has decided to relocate your business to a new location far from your current place of business?
- forced to alter an employee’s working conditions, such as their work environment, schedule, tools and equipment, that an employee is claim significantly disrupts their ability to perform their job effectively?
- forced to restructure a few positions, resulting in an employee upset about significant impact on their responsibilities or managerial authority, or they deserve a corresponding increase in compensation or salary?
- experiencing workplace turmoil, including harassment complaints by some of your employees?
- dealing with a claim of constructive dismissal by one of your employees for recent significant changes to their job or terms of employment?
In some likelihood, you may be experiencing a constructive dismissal claim. In fact, these changes could result in an employee successfully advancing a constructive dismissal claim by arguing they were constructively dismissed despite the employer not actually taking formal acting, such as officially terminating the employee’s job.
What to Do if You’re Experiencing a Constructive Dismissal
Identifying these signs is a crucial first step to meaningful address unfair workplace treatment and significant changes to your job in Ontario. If you are experiencing any of these situations, it is important to then quickly speak with an employment lawyer in Toronto for professional advice. At Bune Law, our employment lawyer is skilled and experienced and can help assess your case, guide you through your options, and represent you in negotiations or legal proceedings, such as negotiating a severance package or navigating constructive dismissal claims.
If you believe you’re experiencing constructive dismissal, it’s crucial to seek legal counsel promptly. An experienced employment lawyer can offer advice on how to proceed, which might include negotiating a severance package or starting a constructive dismissal claim. Here’s how our employment lawyer can help you:
- Legal Consultation with Employment Lawyer: Our constructive dismissal lawyer will speak with you in detail about your case, review your situation and advise you on your legal rights and options moving forward, including whether have a case for constructive dismissal.
- Guidance on Next Steps: If you have a good case for a constructive dismissal claim, our employment lawyer will clearly outline the best course of action, whether it’s negotiation or litigation, as well as timelines, legal costs and potential outcomes, so you can make an informed decision.
- Assist with Constructive Dismissal Claims: Should you choose to pursue your case by challenging your employer’s unfair actions or changes to your job, we’ll provide dedicated legal representation, advocating for your employee legal rights every step of the way, beginning with negotiating your severance package to advancing a constructive dismissal claim (if necessary).
Speak to a Constructive Dismissal Lawyer
Dealing with workplace issues can be stressful, overwhelming and confusing. For that reason, it is better for both employees and employers to be represented by an experienced constructive dismissal lawyer to ensure their interests are well protected and represented. Our employment lawyer in Toronto is ready to assess your situation and offer clear, professional advice on your options. If you are an employee currently facing changes to your employment that do not seem right or fair, or that you are being pressured to simply accept without complaining, reach out to us to better understand your legal rights as an employee. We would be happy to help walk you through your options and next steps to deal with your workplace issue as quickly and effectively as possible.