Constructive Dismissal Ultimate Guide

What is Constructive Dismissal?

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Constructive Dismissal - A Quick Summary

Constructive Dismissal vs. Wrongful dismissal vs. Unjust Dismissal

In employment law context, Constructive dismissal is defined as a contractual breach where an employer, by words or conduct, unilaterally makes a fundamental change to a material term or condition of an employment contract without obtaining the consent of the employee.

Constructive dismissal may occur through substantial, unilateral changes to essential employment terms such as compensation (salary, benefits, or bonus), job responsibilities, reporting functions within the company hierarchy, working conditions, hours of work, the term of employment, or the employee’s location of work.

Wrongful dismissal is a similar yet completely different concept. Wrongful dismissal occurs when an employee is dismissed, or terminated, by their employer, WITHOUT just compensation. There are two types of wrongful dismissal claims:

Termination Without Cause: Terminates employment without cause yet refuses to compensate the employee adequately.Termination for Cause: Inappropriately dismisses an employee for cause and fails to pay any compensation.

Unjust Dismissal is completely different than Wrongful Dismissal or Constructive Dismissal. Unjust Dismissal is ONLY available to federally regulated employees under Division XIV - Unjust Dismissal of Part III of the Canada Labour Code. Click here to learn more about Unjust Dismissal.