dismissal in contracts
While it is relatively rare, in cases where an employer has made the workplace intolerable by making significant changes to an employee’s employment terms, such as a reduction in pay, change of work location or hours, or alteration of duties and responsibilities, it is possible that the employee could make a claim for constructive dismissal. These types of claims are based on an argument that the employee was effectively made to resign by their employer, and they can include damages for lost wages, benefits and potentially severance pay. If you have any concerns that you are a victim of constructive dismissal, contact an experienced Toronto constructive dismissal lawyer to discuss the matter.
When it comes to contracts, an employer can only be found to have breached them by acting in a way that is “fundamental” or “material” and that a reasonable person would conclude the change was not consented to. These types of breaches typically relate to either express or implied employment terms in a contract, such as the Employment Standards Act (ESA) which establishes critical employment standards like minimum wage, hours of work, and leave entitlements. A fundamental breach may also relate to an employer’s actions in breach of the duty to maintain trust and confidence, if their behaviour damages the relationship between them.
It is important to remember that a unilateral change is what defines a constructive dismissal. This type of change is not the same as a minor adjustment, as many such adjustments can be construed as “death by a thousand cuts”, and it may take a significant amount of time to reach a point where one feels they are being treated unfairly, leading them to resign.
Constructive dismissal in contracts?
For employees who are facing such issues, it is essential to seek out a constructive dismissal lawyer as soon as possible, as there are strict time limits for taking legal action. They will need to show that they attempted to resolve the issue by communicating their concerns formally with their employer, or through internal channels. A record of this communication, and a clear timeline of the events that lead to their resignation, will help them prove the elements of a constructive dismissal claim.
An employer can reduce the risk of constructive dismissal lawyer claims by ensuring that they are transparent with their employees regarding any changes to their job role, work conditions, or salary. They can also avoid these claims by fostering a culture of openness and by providing regular training sessions to their managers and human resources teams on employment law and best practices.
If you have questions about a potential constructive dismissal, or other employment law matters, contact Achkar Law to book a consultation with an experienced lawyer. We are dedicated to helping both employers and employees navigate employment law issues, and we provide clear and practical advice. We strive to achieve a positive resolution for all clients, whether it is through negotiations or litigation.