Constructive Dismissal Compensation and the Workplace

Constructive Dismissal Compensation

If your employer has made working conditions intolerable to the point that you feel forced to resign, you may be entitled to constructive dismissal compensation. However, you must be able to prove that your employer acted unreasonably or broke the terms of your employment contract in order to claim damages. If you are unsure whether your situation warrants a complaint to the Ministry of Labour, WSIB or the Human Rights Tribunal of Ontario, please contact us immediately for advice and a free consultation.

In most cases, a breach of the Employment Contract Act will not be sufficient to support a constructive dismissal claim. The law defines a “breach” as either 1) the change to the terms of your employment is substantial enough to force you to make a choice between accepting that change and leaving your job, or 2) you were forced to leave your job because you could not tolerate the intolerable work conditions.

For example, suppose you were working for a retail company that introduced new sales incentives based on performance targets. Managers imposed strict sales targets and expected employees to meet them without adequate training or resources. As a result, errors were frequent, stress levels increased and employees became ill due to exhaustion. The resulting intolerable workplace would be considered to be a breach of the Employment Contract Act and you may be entitled to claim constructive dismissal.

Constructive Dismissal Compensation and the Workplace

The first step in determining whether you can make a constructive termination claim is assessing the nature of the breach. For example, an employer can be found to have breached an express or implied term of your employment contract when they unilaterally change a significant aspect of the terms of your work. The change must be such that it is likely to cause a reasonable employee in your shoes to conclude that the employer no longer intends to honour the terms of their employment contract.

It is also important to assess if you brought the issue of the intolerable work environment to your employer’s attention. If you did, and they failed to take action or addressed the issues in a way that was satisfactory for you, it is unlikely that you can successfully claim constructive dismissal.

If you can prove either of the above, you have a valid claim for constructive dismissal and should speak with a lawyer immediately to review your options for legal action. It is important to note that you must file your claim within 2 years of resigning from your job in order to receive any damages.

Paulette is an experienced and knowledgeable employment law lawyer who works closely with clients to understand their concerns. She is an excellent strategist who is skilled at finding creative, out-of-the-box solutions that benefit both parties while mitigating the legal risks for employers. As a result, Paulette is frequently able to develop risk-minimizing strategies that allow employers to implement changes to the workplace while supporting employee morale and retention.