constructive dismissal in canada about constructive dismissal

about constructive dismissal

In Canada, employment laws dictate that employers must provide a safe and respectful work environment for their employees. If an employer creates intolerable working conditions, an employee may quit their job and claim constructive dismissal. However, it’s important for workers to seek legal advice before they decide to file a lawsuit against their employer. An experienced Toronto employment lawyer can help workers determine whether their case is a constructive dismissal and the appropriate course of action to take.

The law surrounding constructive dismissal in canada is complex. Essentially, it applies when an employer violates the terms of an employment contract by making significant changes to vital aspects of an employee’s position without their consent. These changes can be anything from a change in shifts or locations to reducing an employee’s compensation by more than 10%.

Aside from the explicit terms of an employment contract, the law also relies on common law principles and judicial decisions to inform the interpretation and application of constructive dismissal. For instance, the court decision Farber v. Royal Trust Co. expanded the scope of what constitutes constructive dismissal by determining that significant unilateral changes to key terms of an employment contract could constitute constructive dismissal. It was further refined in the court case Potter v. New Brunswick Legal Aid Services Commission, which established a two-part test for determining constructive dismissal – firstly, the court will assess whether the employer breached the basic terms of an employee’s contract; and secondly, the court will consider whether those breaches caused the employee to resign in response (involuntary resignation).

constructive dismissal in canada about constructive dismissal

Employees who successfully demonstrate that their working conditions have been made intolerable by a change to their contract are entitled to compensation, typically referred to as severance pay. The amount of compensation varies and is often influenced by the length of time an employee has been employed, the nature of the change to their role, and the availability of similar jobs in the local job market.

An employer can avoid a constructive dismissal toronto claim by carefully considering the impact of any proposed changes to an employee’s role or compensation and consulting with a Toronto employment lawyer before taking any action. This will ensure that the changes are based on reasonable business practices and that they comply with employment standards.

If you’re facing a constructive dismissal claim or need help understanding your rights and options, contact Achkar Law today for a free consultation. We are dedicated to helping both employees and employers understand their rights and obligations under Ontario employment laws. Our team of skilled legal professionals is committed to providing clear guidance and strong representation. We strive to minimize legal risks for our clients by focusing on positive solutions that respect workplace dignity and compliance with employment standards. We can assist with all types of employment issues, including terminations, harassment claims, and human rights complaints. Call us to schedule a free consultation with one of our knowledgeable employment lawyers in Toronto.