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ARTICLE · 25 AUGUST 2017

Constructive dismissal – when is a resignation not a resignation?

These cases illustrate what employers need to be aware of when considering constructive dismissal in their workplace.

AustraliaEmployment and HR

Emily Dempster looks at some case examples that highlight what employers need to be aware of when considering constructive dismissal in their workplace.

In Brief: It is a commonly held misconception that employees who resign from their employment are unable to make dismissal-related claims. Based on this mistaken belief, employers often take steps to 'encourage' problem employees to resign from their employment, whether by way of making express suggestions to the employee to this effect or by way of engaging in conduct which encourages the employee to resign.

The above approach is problematic. Employees who resign from their employment because of conduct engaged in by the employer are considered to have been constructively dismissed. Further, employees who have been constructively dismissed are entitled to make dismissal-related claims notwithstanding the fact that they have technically resigned from their employment.

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