Under Ontario employment law, an employer may be permitted to make some changes to the terms and conditions of an employee’s job in certain circumstances.
- if there is an employment contract with an explicit term stating the employee authorizes the employer to make reasonable and necessary changes to the employee’s job title, duties and responsibilities, work location, and so on, and this would not constitute a constructive dismissal claim.
- if the employee condones or explicitly authorizes the changes to their job before or after-the-fact
- if the changes to the terms and conditions of employment are not significant but rather minor and reasonable for the business
What is a Constructive Dismissal in Ontario?
Under employment law in Ontario, a constructive dismissal generally occurs in one of two circumstances:
- a single unilateral act by an employer that breaches an essential term of an employee’s contract by implementing a significant change to the terms and conditions of the job, and despite the employee’s objections
- a series of acts by the employer that, taken together, show the employer no longer intends to be bound by the employment contract.
What are the Types of Constructive Dismissals?
To prove a constructive dismissal, an employee must show the change to their job was significant and unilaterally made by the employer to an essential element of their job, such as:
- reduced compensation (salary, bonus, commissions, hourly wage rate, and so on)
- unpaid suspension from work
- changing an employee’s daily or weekly work hours
- temporary layoff
- relocation of work
- demotion (removal of supervisory responsibilities, change to their job title)
- substantial increase in workload (duties and responsibilities)
- substantial removal of duties and responsibilities
- change in job title
- change in hierarchy or reporting relationships (e.g., they are required to report to a lower-ranking employee or to a subordinate)
- refusing to provide workplace accommodations (the employer violates the Ontario Human Rights Code by refusing to provide reasonable job modifications that would allow the employee to continue working)
- delaying payment of an employee’s wages
- workplace harassment and bullying (toxic workplace)
- discrimination
What Happens if I have a Constructive Dismissal Claim?
If an employee can prove that the employer’s actions amounted to a unilateral significant change to their job, they may be able to pursue a constructive dismissal claim. With the help of an constructive dismissal claim lawyer, an employee may be able to justify an involuntary resignation from their job and seek a severance package (financial compensation for the employer’s actions in effectively ending their job).
However, a constructive dismissal claim is risky and should only be done in specific circumstances with the help of an experienced employment lawyer in Toronto, since an employee who quits (resigns) or abandons their job could be seen by the employer and a court to have forfeited their job, and consequently, they would not have a valid constructive dismissal claim or right to receive a severance package.
How to Succeed in a Constructive Dismissal Claim?
Anytime an employee is experiencing significant changes to the terms and conditions of their employment, it is important to take detailed notes to be able to explain how and why the job changes are so substantial as to amount to no longer having the same job. As important, an employee must consult with an experienced constructive dismissal lawyer in Ontario as quickly as possible (especially before the changes take effect) to understand their legal rights, entitlements and options in responding to the major job changes, as an employer can otherwise claim the employee “condoned” (accepted) the job by staying put despite making objections.
Take-Away Lessons
For Employees
- Formal Communication: If you suspect that you are experiencing constructive dismissal, begin by discussing your concerns respectfully with your employer. For example, you can write a clear and concise letter or email detailing the changes the job changes have recently observed and how they affect your employment terms (e.g., substantial increase in workload, reduction in income, and so on). Be specific about any significant changes from your original employment contract or job description and express your objections to these changes as amounting to constructive dismissal.
- Document Everything: Maintain a detailed record of all communications with your employer regarding the issue, as well as notes on any significant changes to your working conditions, job role, work location, work hours, job title, salary, or benefits. This documentation should include dates, times, descriptions of conversations, and any responses or actions taken by your employer. This information can be valuable if you need to pursue legal action, such as a constructive dismissal claim seeking a severance package from your employer.
- Seeking Legal Advice: Consulting with an employment lawyer as soon as possible is very important. In doing so, you will be able to properly assess your situation, advise on the strength of a potential constructive dismissal claim, and guide you through the process of negotiating with your employer or pursuing legal remedies. They can also assist in ensuring that any steps you take, such as rejecting the changes or resigning, are done in a manner that preserves your legal rights by guiding you through it.
For Employers
- Employment Contracts: having an employee sign an employment contract granting the employer permission to make reasonable changes to the employee’s job can shield the employer from the employee’s objections to workforce restructuring or a constructive dismissal claim.
- Be Fair and Communicate Clearly: Before implementing significant changes that could impact your employees’ terms of employment, announce these changes to the employee far in advance by explaining the reasons for the changes, and how they will affect employees’ roles, responsibilities, or compensation. Most importantly, ensure the changes are not so significant as to fundamentally change the employee’s job or otherwise force them to balk at the changes to come.
- Seek Consent: If possible, obtain explicit permission from employees for any changes to their employment terms. This can involve renegotiating the terms and conditions of their employment by signing a new employment contract.
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.
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