The Building Blocks Of Constructive Dismissal

Generally when employees decide to leave their jobs, they are considered to have resigned. But if employees leave their jobs because the employer substantially changed essential terms of their employment contract, they are considered to have been constructively dismissed. The line separating these two notions is often unclear. It is especially so when terms of employment are changed following a corporate merger or integration. In a recent decision, St-Hilaire c. Nexxlink inc. (PDF - available only in French), the Court of Appeal of Quebec reviewed the building blocks of constructive dismissal in this very context.

In this case, Louis St-Hilaire, a vice-president at Nexxlink, left his job following the acquisition of the company by Bell. Following this transaction, certain aspects of Mr. St-Hilaire's employment contract were changed, such as his title, some of his responsibilities and certain aspects of his remuneration. On the day of his departure, he informed the