What Constitutes Constructive Dismissal in Canada?
Constructive dismissal can arise from a substantial unilateral contract change or a course of conduct showing the employer no longer intends to be bound.
Constructive dismissal occurs when an employer does not expressly fire an employee but changes or breaches the employment relationship so seriously that the law treats the employment contract as terminated. The Supreme Court of Canada set out the modern framework in Potter v. New Brunswick Legal Aid Services Commission. Constructive dismissal can arise in two different ways: from a substantial unilateral breach of an essential contract term, or from a course of employer conduct that would lead a reasonable person to conclude the employer no longer intends to be bound by the contract. First, did the employer unilaterally breach an express or implied term of the employment contract?
Opening this article…
