Constructive dismissal occurs when an employer makes a fundamental change to an employee’s job without the employee’s agreement, effectively forcing them out. In Ontario, the law treats this as a termination initiated by the employer, even though the employee may technically resign. This applies when the change is serious enough that a reasonable person would feel they can no longer continue working under the new conditions.

Common examples include significant pay reductions, demotions, major changes to duties, forced relocations, or a work environment that becomes toxic or unsafe. The focus is not on whether the employer intended harm, but on whether the change substantially altered the terms of employment. Each situation is assessed based on its specific facts.

Often, yes. Many constructive dismissal claims involve an employee resigning in response to the change. However, resigning too quickly or without clearly linking the resignation to the change can weaken a claim, which is why timing and wording matter.