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constructive dismissal litigation: Employment Lawyers

Constructive dismissal constitutes a form of wrongful termination wherein the employer hasn’t directly discharged the employee, but instead has failed to uphold a significant aspect of the employment agreement. This could involve altering a term without the employee’s agreement or employing threats to induce the employee to resign.

What sets constructive dismissal apart from a voluntary resignation is that, in the former, the employer has essentially modified or breached the employee contract, prompting the employee to perceive this as a termination of their employment contract. Put differently, the employee is coerced to resign due to the employer’s substantial alterations, even though the employer never explicitly declared “you are fired.”

Cases of constructive dismissal tend to be intricate, underscoring the importance of reaching out to our firm at the earliest indication that you’ve encountered such circumstances.

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In Ontario, constructive dismissal is grounded in the doctrine of repudiation. Repudiation occurs when a party to a contract (in this instance, the employer) engages in a substantial breach of the contract or indicates an intention to do so. The party without fault (here, the employee) holds the right to consider the employment contract as terminated, thereby becoming eligible for compensation due to any losses stemming from the contract’s termination.

A crucial element in a constructive dismissal case involves the employee either resigning or initiating a lawsuit for constructive dismissal, thus demonstrating their acknowledgment of the employer’s breach of the employment contract. This distinction is vital: the employee isn’t “accepting” the change, but rather affirming the termination of the employment contract due to that change.

The inherent nature of a constructive dismissal case necessitates prompt action. Therefore, reaching out to our firm immediately is imperative. If swift action is not taken, a court could determine that you’ve condoned the employer’s breach, potentially leading to the barring of your constructive dismissal claim.

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