Constructive Dismissal in Ontario: Overview
A constructive dismissal is defined as follows: if an employer makes a substantial change to the terms of an employee’s employment without the employee’s consent or demonstrates an intention to not longer be bound by the terms of the employment contract the employee has the option of treating his or her employment as having been terminated. The departure of the employee will not be considered to be a resignation but, instead, will be a termination of employment.
An employer found to have constructively dismissed an employee will be required to provide the employee with a severance package.
To be considered a constructive dismissal the change(s) to the terms of employment must go to the very heart of the employment contract. Minor changes will not trigger a constructive dismissal. Indeed, an employer has the right to make reasonable changes to an employee’s job duties and responsibilities in order to properly manage its business and adapt to changing market conditions.| | | Next → |