Understanding Constructive Dismissal: When Job Change Goes Too Far
Not every change to your employment is a problem, but sometimes a job change goes too far and crosses a legal line into constructive dismissal. In Ontario, this happens when an employer makes a significant change to your job without your agreement, such as cutting your pay, shifting your hours, or altering your role.
If this happens, you may be entitled to severance and compensation similar to someone who was fired without cause. However, this is a legally complicated area, and the wrong move can cost you. Always speak with an employment lawyer before taking action.
What Does Constructive Dismissal Really Mean?
Constructive dismissal happens when your employer unilaterally makes a major change to your job that affects an essential part of your employment without your consent. The courts look at whether this change (or changes) violates the terms of your employment agreement and whether a reasonable person in your situation would consider it a serious alteration.
Even though the employer does not officially fire you, the law treats the situation as if they had, because they have effectively broken the terms of your employment.
How Does Constructive Dismissal Happen
Constructive dismissal can take many forms. It might involve a major reduction in pay or a significant change in your work schedule. It could mean being demoted or having your responsibilities taken away. Some people face repeated disrespect, toxic behaviour, or workplace harassment that goes unaddressed by management. In some cases, an employer may try to relocate you to a different work site without reasonable justification.
Each of these scenarios must be looked at in context. For example, a shift change may be more disruptive for an employee relying on public transit than for someone with flexible transportation. Similarly, a change in compensation structure might be significant enough to justify a construction dismissal in one case but not in another. These details matter, and the only way to know where you stand is to speak with a lawyer who understands employment law in Ontario.
Your Rights When a Job Changes Without Warning
When faced with a major change at work, some employees feel stuck, but you do have options. You may accept the new terms and continue working, or you may decide the changes are too serious and that your employment has effectively ended. In some situations, you can also reject the change while staying in the role and insist on the original terms of your employment.
What you choose to do and how you respond can have long-term consequences. Timing, communication, and documentation are all critical. Taking the wrong step could lead to a loss of severance or weaken your legal position if the matter goes to court. It is important to consult with an employment lawyer before you take any drastic action.
Why Constructive Dismissal Is a Risky Claim
One of the biggest risks is that in order to pursue a claim, you usually have to leave the employment first. If the court later finds that the employer’s actions did not amount to a constructive dismissal, you may be seen as having quit (resign) voluntarily. That could mean walking away from termination pay, severance, or even Employment Insurance benefits. You may also be expected to accept a recall or return to work in some cases to reduce your financial losses. Failing to do so could work against you.
Because of the risks involved, many people are advised not to resign until they have spoken with an employment lawyer and have a clear legal strategy in place.
How Employers Try to Avoid Liability with Constructive Dismissal
Some employers try to manage their legal risk by easing employees into changes slowly, hoping they will not object. Others may give written notice that changes will take effect in the future — sometimes months ahead — so they can argue the change was communicated properly. In other cases, contracts are written to give the employer wide flexibility to change job terms.
These strategies can limit your ability to claim constructive dismissal later, but they do not always hold up in court. The strength of your case depends on the wording of your contract, the size and nature of the change, and how you respond.
What You Might Be Entitled to If Your Job Changes Drastically
If the court agrees that you were constructively dismissed, you will usually be entitled to severance or notice just like someone who was fired without cause. Your age, length of service, position, and how hard it will be to find similar work will all be considered in calculating your compensation.
In certain situations, you may also receive extra compensation. This might happen if the employer acted in bad faith, if the dismissal involved discrimination or harassment, or if you were recruited from another job under promises that were not honoured.
Building a Strong Case for Constructive Dismissal Starts Early
If you believe your job has changed in a way that might amount to constructive dismissal, it is critical to act quickly. Keep a detailed record of changes, conversations, and incidents. Follow up in writing whenever possible to confirm that you do not agree to the change. Avoid relying solely on verbal objections – courts tend to trust clear, written communication more than memories of what was said.
Most importantly, do not sit on your rights. Waiting too long to respond to a major change may suggest that you accepted it. For example, if your salary is suddenly reduced by 30 percent, you have a much shorter window to respond than if your reporting structure changes slightly. The sooner you get legal advice, the more options you may have.
Get Legal Advice Before You Resign or Make Any Major Changes. Call Gionet Fairley Wood LLP to Protect Your Rights
If your workplace has changed in a way that no longer feels fair or no longer reflects what you agreed to, do not make any assumptions about your rights. Constructive dismissal is a serious legal matter, and it is easy to make costly mistakes without professional advice.
Before you resign or take action, speak with an experienced employment lawyer at Gionet Fairley Wood LLP. We can help you understand if your case qualifies, what evidence you need, and how to move forward.
Think your employer has crossed the line? Contact Gionet Fairley Wood LLP today for advice on constructive dismissal in Ontario. Give us a call at (705) 468 1088 or visit our website to schedule a consultation.
***The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.