Constructive Dismissal Ultimate Guide

What is Constructive Dismissal?

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Constructive dismissal is an important component of employment law. A Constructive Dismissal case is highly technical, a constructive dismissal lawyer in Toronto can help.

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 are frequently tied to issues such as layoff, discrimination against disabilities. Constructive dismissal happens, ACT immediately!!

A Constructive Dismissal Toronto Lawyer can help. No-Win-No-Fee for constructive dismissal cases.

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.

A constructive dismissal, in employment law context, might occur even if there’s no breach of a specific employment term in the employment contract; rather, constructive dismissal occurs where the employer’s overall conduct indicates it no longer intends to be bound by the employment contract, for example, by a series of actions that cumulatively makes the employee’s position intolerable.

You can claim constructive dismissal under both common law and under the Employment Standards Act (ESA). The ESA incorporates by reference the common law test for constructive dismissal.

Constructive Dismissal vs. Wrongful dismissal vs. Unjust Dismissal

Constructive Dismissal happens when an employer, by words or conduct, unilaterally makes a fundamental change to a material term or condition of an employment contract.

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.

Click here to learn more about Wrongful Dismissal.

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.

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