Legal Aspects of Constructive Dismissal

If an employer creates intolerable working conditions that lead to involuntary resignation, then they have committed constructive dismissal. This may be an illegal form of retaliation under whistleblower laws, or it can be a breach of an employment contract. In the latter case, an employee might be entitled to monetary compensation under the terms of their contract.

The employee must be able to demonstrate that their resignation was in response to a breach of contract. They must also be able to prove that these conditions are so intolerable that they make it impossible for them to continue to work there. In addition, the complaint must be based on conduct that is unlawful and that they could not have accepted had they known about it beforehand.

For example, if a manager singles out an employee with constant criticism at company meetings or humiliates them in front of the whole team, this may constitute unacceptable behaviour and be grounds for a claim of constructive dismissal. Similarly, if an employer fails to investigate complaints of bullying, sexual harassment or discrimination, or it retaliates against employees who report these issues, this can lead to a claim of constructive dismissal.

It is generally necessary to have some evidence of the intolerable conditions, such as a letter of resignation that states that the employment relationship has been terminated due to this breach. It is important to note, however, that if an employee carries on working in spite of the breach for an unreasonable length of time, then it is likely that they have affirmed their contract by doing so and cannot now bring a constructive dismissal claim.

What Are the Legal Aspects of Constructive Dismissal?

In cases of constructive dismissal, a tribunal will often award damages for both the financial loss sustained by the employee and the distress caused by the termination. The tribunal will take into account the age and education level of the complainant, as well as the availability of other jobs in the labour market, when determining appropriate compensation.

A tribunal might also award an additional amount, known as aggravated or punitive damages, to compensate the employee for what they have suffered. This is intended to punish the employer for their actions, deter other employers from treating their employees in the same way and to express the community’s collective disapproval of what has happened.

If an employee successfully brings a claim for constructive dismissal Toronto, they may be entitled to a significant sum of money in compensation for the losses they have sustained. In some cases, they might even be able to claim an additional amount of money for the distress and anxiety that has been caused by their situation. In these instances, it is essential to consult with an experienced lawyer to ensure that all the legal requirements have been met. The law firm of CKR Law can help you to determine whether you have a valid claim for constructive dismissal and assist you in pursuing the appropriate amount of compensation.