Job Relocation and Constructive Dismissal in Ontario

Job Relocation: Can it Lead to Constructive Dismissal in Ontario?

When an employer requests an employee to relocate for their job, it can often be a very stressful experience. While it might seem like a great opportunity for some employees, for many others, it can be a career-altering decision. In some cases, a job relocation can even be considered a constructive dismissal under Ontario employment law.

What is Constructive Dismissal?

In Ontario, a constructive dismissal occurs when an employer makes a significant change to the terms or conditions of an employee’s job that is so drastic that the employee feels forced to involuntarily resign. Put simply, it is essentially an unofficial termination of employment brought about by an employer’s wrongful actions, even though the employee is the one who resigns.

Why a Relocation Can Result in a Constructive Dismissal

A job relocation can be considered constructive dismissal if it is unilaterally implemented by an employer despite an employee’s objections, especially if it results in:

Significant change to employment terms and conditions: the relocation must substantially alter the terms of your employment contract. This could involve a significant increase in commute time, a decrease in salary, or a change in job responsibilities.
Unreasonable relocation: the employer should provide reasonable terms for the relocation, such as prior reasonable notice of the relocation, not an unreasonable increase in the employee’s commute time, relocation expenses, temporary accommodation, or time to adjust. If these terms are not considered fair, it may be grounds for constructive dismissal.
Severe negative Impact on personal life: the relocation generally has a significant negative impact on an employee’s personal life, especially if can impacts the employee’s family, health, financial obligations, and personal commitments that should often be considered by an employer.

Common Scenarios of Relocation Leading to Constructive Dismissal

Understanding specific examples can help you determine if your situation might constitute constructive dismissal. Here are some common scenarios:

Significant Increase in Commute Time

If your job relocation involves a dramatically increased commute, it might be considered a constructive dismissal. Factors such as:

Previous commute time: How does the new commute compare to your old one? To what extent does your commute increase or become complicated?
Available transportation options: Are there reliable public transportation options or is driving the only option? Are there issues that impact your ability to commute to work, including driving ability or workplace disability accommodations?
Impact on work-life balance: How will the increased commute affect your personal and family life?

Reduction in Salary or Benefits

If the job relocation results in a significant decrease in an employee’s salary or benefits, it may be grounds for constructive dismissal.

Demotion or Change in Job Responsibilities

If the employee’s job title, responsibilities, or authority are significantly diminished as a result of the relocation, it might be considered a constructive dismissal. A significant change in an employee’s role within the hierarchy of the company can be a major factor in determining whether the relocation is reasonable.

Unreasonable Timeframe for Relocation

If the employer imposes an unrealistic timeline for the job relocation, it could be considered a constructive dismissal. Simply put, employees need time to arrange their personal and family affairs, find new housing, and settle into a new city.

Health and Safety Concerns

If the new work location poses a significant health or safety risk, it could be grounds for constructive dismissal. The employer has a duty to provide a safe working environment, and failure to do so can be a serious breach of contract.

Severance Pay and Constructive Dismissal

If you believe you have been constructively dismissed due to a job relocation, you may be entitled to financial compensation in the form of a severance package. Unless you previously signed a lawful termination clause in an employment contract limiting your entitlements upon termination (severance pay), your severance package (the amount of severance) typically depends on factors such as:

Your length of service
Your age
Your salary
Availability of similar employment based on your education, skillset and current economic and labour market conditions

What to Do if You are Facing a Job Relocation and Constructive Dismissal

If you’re faced with a job relocation, it’s essential to carefully consider the implications. Here are some steps you can take:

Review your employment contract: with the help of an experienced Ontario employment lawyer, an employment contract review will help you understand the terms and conditions of your contract, including any relocation clauses and the option to challenge significant changes to your job that can result in a constructive dismissal in Ontario.
Negotiate with your employer: discuss your concerns with your employer about the relocation and try to negotiate more favourable terms (preferably with the help of an employment lawyer negotiating the workplace dispute with your employer).
Seek legal advice: Consult with an employment lawyer to assess your situation and understand your employee legal rights.

It is important to remember that each case is unique, and what constitutes a constructive dismissal in Ontario depends on the specific circumstances. If you believe you have been constructively dismissed due to a job relocation, seeking legal advice is crucial to protect your rights and potential entitlements.

Book a Consultation with an Employment Lawyer in Toronto

At Bune Law, we understand and are familiar the complexities of workplace law and are committed to helping both employers and employees navigate these challenges. Whether you are an employer or employee dealing with employment contracts, workplace disputes like a wrongful dismissal or constructive dismissal, or simply need guidance on your rights and obligations for a severance package review and negotiation, our experienced employment lawyer is here to assist you.

Book a confidential consultation with our Toronto employment law firm to protect your legal rights to understand your options and protect your rights.

Why Choose Bune Law When You Need an Ontario Employment Lawyer?

Experience in all areas of workplace law, including wrongful dismissal claims, constructive dismissal claims, severance package reviews, severance package negotiations, discrimination and human rights disputes, and employment contract reviews.
Proven track record of successfully resolving workplace disputes through negotiation, mediation, and employment litigation.
Compassionate and personalized approach to each case, ensuring tailored solutions that meet your specific needs.

If you need a Toronto employment lawyer who is committed to delivering strong results and proactive solutions, please contact Bune Law online or by phone today at 647-822-5492.