Beware Constructive Dismissal – Best Practices For Employers

As provinces continue through their respective reopening plans, employers are beginning to recall their employees back to work. Given the number of operational challenges present due to COVID-19, it is quite possible that the organizations employees are returning to have undergone some changes.

Employers should carefully review organizational changes that have an impact on the terms and conditions of employment of their returning employees. Some of these changes may run the risk of a constructive dismissal claim.

Constructive Dismissal

Where an employer unilaterally reduces an employee's pay or benefits or reassigns work duties to such an extent that the essential nature of the employee's position is altered, the employee may potentially consider their employment contract to have been repudiated and claim against their employer for constructive dismissal and monetary damages. It is important to note that the change need not reference specific terms of an