Precedents for Constructive Dismissal
When an employee resigns because they feel they cannot work in a particular workplace, they may be able to claim constructive dismissal. This is a form of wrongful termination that involves the employer wrongfully making working conditions so intolerable that the employee feels they have no choice but to resign (see FindLaw’s Wrongful Termination section for more information). In general, in order for an employee to successfully bring a constructive dismissal claim, they must be able to show that their decision to resign was motivated by a fundamental breach of either a contractual term or a breach of the implied covenant of mutual trust and confidence.
The Supreme Court has recently clarified some of the legal precedents that exist for constructive dismissal cases. Specifically, the Court’s recent decision in Suders establishes under what circumstances an employer can assert an affirmative defence to a hostile-work-environment claim, and clarifies the burden of proof for such claims.
In this article, we will discuss the various legal precedents that exist for constructive dismissal claims, as well as some tips on how to prevent them. We will also explore how a settlement agreement can be an effective tool to help mitigate an employee’s potential to bring a constructive dismissal claim, in exchange for waiving their right to sue over the circumstances of the termination.
Legal Precedents for Constructive Dismissal
The law relating to constructive dismissal toronto is complex and difficult to navigate. The Supreme Court has attempted to clarify the law through several decisions, including Ellerth v Faragher and Suders v Pennsylvania State Police.
However, it remains open to interpretation and debate among lower courts over what constitutes “official action” that triggers the Ellerth/Faragher affirmative defense. For example, there is some debate as to whether a supervisor’s behaviour during a promotional computer skills exam qualifies as an official act that would trigger the Ellerth/Faragher defense.
Further, it is important to remember that in assessing whether an employee’s working conditions are so intolerable that they feel forced to resign, the court looks at the situation objectively. The question is not simply whether an employee subjectively believes their working conditions are intolerable, but rather, whether a reasonable person in the same circumstances would also find them so.
For this reason, it is important for employees to formally inform management or someone in a position of authority of the intolerable working conditions. In addition, an employer must have actual knowledge of the intolerable working conditions in order to be found to have caused a constructive dismissal. This is why it is important to ensure that any alleged breaches are documented, and that employees have access to their written employment contract so they can be reassured that the conditions in which they are working are fair and equitable. Otherwise, it will be difficult for an employee to bring a constructive dismissal claim.
