Constructive Dismissal Affect Shareholder Value
The term constructive dismissal refers to a situation where an employer changes the terms of employment in such a way that it forces the employee to resign. It’s an issue that’s often viewed as unfair because it leaves the worker with no other choice than to leave their job. The short-term consequences are financial hardship since the person may not receive severance pay or salary continuation, and it can also be challenging to find another job because hiring managers may question why they left their old position. The long-term impact of a constructive dismissal can also be negative, as the individual’s self-esteem could take a hit and they might feel ashamed to disclose why they quit their job during future job applications.
In Ontario, there is a set minimum standard for most workplaces called the Employment Standards Act (ESA). These laws establish critical employment terms such as compensation, hours of work, and leave entitlements, among others. They are used as the baseline against which any deviations or alterations can be measured.
Depending on the circumstances, a breach of an explicit or implied term can qualify as constructive dismissal. An explicit term is something that is stated in an employee’s contract or policies, such as a termination clause. An implied term is more difficult to define, but it can be anything that destroys the trust and confidence of an employee-employer relationship without good cause. Examples include reorganization, demotion, re-assignment, and severance packages.
How Does Constructive Dismissal Affect Shareholder Value?
For example, imagine your company underwent a management change and it decided to reassign you from your current role to one in a different department. You objected to the decision and asked for clarification, but you were ignored. As a result, you resigned from your job because the intolerable working conditions were making it impossible to perform well and keep up with your obligations. Your resignation could be considered constructive dismissal and you should seek the help of a Toronto constructive dismissal lawyer near me.
Other types of behavior that could be construed as constructive dismissal include discrimination, harassment, and unwarranted discipline. These are generally more serious than reorganization or a reduction in duties because they can affect the employee’s ability to function at their job and lead to mental distress.
An experienced and knowledgeable Toronto Employment Lawyer can help you determine whether your situation meets the criteria for a claim of constructive dismissal. If so, you should act quickly to protect your rights and to ensure that you get the best possible compensation for your loss.
If you’re having trouble finding an effective solution to your workplace problems, contact Achkar Law. We’re a Toronto employment law firm that handles all types of workplace issues, including wrongful termination and constructive dismissal claims. We can assist you with your claim, and we offer a free initial consultation. To learn more, visit our website or give us a call! We’re happy to help.