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ARTICLE · 26 MAY 2016

What Is Constructive Dismissal?

Constructive dismissal, in effect forced resignation, is generally poorly understood.

AustraliaEmployment and HR
Elise Croft (Previously With Kott Gunning)
Elise Croft (Previously With Kott Gunning)
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Constructive dismissal, in effect forced resignation, is generally poorly understood, mainly because it can manifest itself in a myriad of different situations depending upon the terms of any given employment relationship.

Constructive dismissal occurs when the conduct of the employer was so "harmful, adverse or unfriendly to" the contract of employment and the employment relationship that the employee could not be expected to put up with it.

Common examples include:

  • an employer expressly suggesting that an employee resign (irrespective of whether the employee made the suggestion) so as to assist with preserving the employee's future ability to obtain work;
  • an employer actively making it very difficult or impossible for an employee to fulfil their role;

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