Constructive Discharge | What's Constructive Dismissal?

What is Constructive Discharge?

Constructive dismissal occurs when an employee quits their position because the conditions are so unpalatable that an honest person in their situation would be compelled to leave. In these situations, the resignation is not solely voluntary, as the circumstances are essentially forcing the employee to quit.

Key Points of Constructive Discharge:

Intolerant Working Environment: Workplaces that are so hostile, abusive, or oppressive that a rational person is unable to work in those conditions. This may be discrimination, harassment, extreme overwork, or dangerous working environments.
Employer’s Responsibility: The unacceptable conditions must result from the employers’ inaction or actions. It must be proven that the company was accountable for establishing or permitting the conditions to continue.
Absence or knowledge of the employer: In certain circumstances, it needs to be established that the employer had either a motive to force the employee to quit or that the employer was aware of the insufferable circumstances but did nothing to rectify them.
Legal Impacts: A constructive dismissal is an argument for claims in court like discrimination, wrongful termination, or the threat of retaliation. If the case is proved, it may permit an employee to seek damages as if fired by the employer even though they actually resigned.

Examples of Constructive Discharge:

A worker quits due to their supervisor constantly harassing the employee, and despite being aware, the company is unable to stop the harassment.
A company drastically reduces the salary of an employee or degrades them without cause, which makes it difficult for an employee to continue working.
A worker is being given a disproportionate workload, overtime hours, or impossible targets that make it impossible for them to achieve success, and the employer refuses to acknowledge any request to be relieved.

What’s Constructive Dismissal?

Constructive discharge is similar to constructive suspension. However, it is more frequently used in the employment law of the United Kingdom and other Commonwealth countries.

Key Points of Constructive Dismissal:

Intentional Breach:

Consensual Dismissal occurs when an employer systematically violates a crucial clause of an employee’s contract, forcing the employee to quit the job. The breach may be clear (e.g., not paying wages as agreed) or implicit (e.g., creating a hostile workplace ).

Employee Resignation

An employee must be able to resign due to an incident. The resignation has to be a direct consequence of the employer’s conduct, and in general, it has to be completed within a short time after the breach has occurred for the claim to be legitimate.

Types of Breaches:

Payment and benefits: Inability to make payments on wages or change benefits without prior approval.
Work Conditions: Insisting on changes to the job’s assignments, hours, place of work, or other aspects of the job without a written agreement.
harassment and bullying: Allowing or engaging in conduct that creates a hostile or dangerous workplace.
trust and confidence: Acting in a way that undermines the respect and faith between employers and employees by inequitable treatment or untruthful behavior.

Lawful Recourses

If a worker quits because of constructive dismissal, the employee may be able to pursue legal action against their employer, generally for unfair and unjust termination. The employee could claim the resignation as effectively an employee’s termination by the employer due to inexplicably difficult circumstances.

The proof and evidence

An employee must provide evidence to prove that their employer’s actions amounted to an unintentional breach of contract and that this breach is the reason for their resignation.

Examples of Constructive Dismissal:

Employers can unilaterally cut an employee’s pay or alter their job duties without their permission.
An employee quits their job due to constant bullying by a colleague, which the employer is unable to address.
Employers can make unexpected and substantial modifications to the conditions and terms of employment, such as shifting the office to a remote city, without prior consent.

Is Constructive Dismissal Illegal?

The act of constructive dismissal is not legal. Still, it could be a legal issue in the event that an employee is able to prove that their dismissal was the result of a fundamental breach of contract by their employer. In these cases, the employer could be held responsible for unfair or unjust dismissal, depending on the specific circumstances.

Also See: Employee Assistance Programs (EAP)