My employer changed my pay, title or hours in Ontario — is that constructive dismissal?
A unilateral change to a fundamental term of employment, or conduct that makes continued employment intolerable, can amount to constructive dismissal and trigger the same entitlements as an outright termination.
Constructive dismissal arises where the employer unilaterally changes a fundamental term of the employment contract — compensation, duties, reporting, location or hours — in a way a reasonable person would view as a substantial alteration, or where a course of conduct makes continued employment intolerable. The employee has not resigned; the employer has repudiated the contract.
The risk is that the analysis is fact-specific and the consequences of getting it wrong are severe. An employee who walks out over a change a court later finds minor has resigned and recovers nothing. There is also a duty to mitigate that can, in some cases, require staying in the modified role.
The practical steps are to object in writing promptly, keep the record of what changed and when, and get advice before resigning. Acquiescing over time can be treated as acceptance of the new terms.
Source: Employment Standards Act, 2000 · common law of constructive dismissal
This work is handled by Arjun Vishwanth (Employment / wrongful dismissal). Read more about employment / wrongful dismissal at VK Law Group, or send us the facts and we will tell you where you stand.
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