Legal Dictionary

constructive dismissal

Legal Definition of constructive dismissal

Noun

Under the employment law of some states, judges will consider a situation where there has been a fundamental violation of the rights of an employee, by the employer, so severe that the employee would have the right to consider himself as dismissed, even though, in fact, there has been no act of dismissal on the part of the employer.

Example: If an employer tries to force an employee to accept a drastic demotion, the employee might have a case for constructive dismissal and would be able to assume that the employment contract has been ended and seek compensation from a court.

Definition of constructive dismissal

Further reading

In employment law, constructive dismissal, also called constructive discharge, occurs when employees resign because their employer's behaviour has become so heinous or made life so difficult that they may consider themselves to have been fired. The employee must prove that the behaviour was unlawful - that the employer's actions amounted to a fundamental breach of contract, also known as a repudiatory breach of contract.

The exact legal consequences differ between different countries, but generally a constructive dismissal leads to the employee's obligations ending and the employee acquiring the right to make claims against the employer. For example in the United Kingdom, a claim for "unfair dismissal" and a claim for "wrongful dismissal" may arise.

The employee may resign over a single serious incident or over a pattern of incidents. Generally, the employee must have resigned soon after the incident.

The notion of constructive dismissal comes from the concept that (as it is phrased in United Kingdom law) "An employer must not, without reasonable or proper cause, conduct himself in a manner calculated or likely to destroy or seriously damage the relationship of trust and confidence between the employer and the employee." (Courtaulds Northern Textiles Ltd v Andrew [1979] IRLR 84, EAT.)

Examples of actions potentially justifying resignation

Failing to pay wages due.
Putting managers into excessively difficult work situations without supporting their decisions.
Harassment or humiliation, particularly in front of less senior staff.
Victimisation of the staff member.
Unilaterally changing the employee's job content or terms of employment.
Significantly changing the employee's job location at short notice.
Falsely accusing an employee of misconduct or of not being capable of carrying out their job.
Undue demotion or disciplinary procedures.
Sabotage of employee's work product either directly or indirectly with repeated interruption, confusing or inaccurate direction, or uncommunicated deadline changes.
Vandalizing the employee's workspace, home or other personal property. Such tactics could range from minor destruction of immaterial items to more severe acts of vandalism.
Forced attendance of a social event against the employees wishes.

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