What is Constructive Dismissal in Ontario?
Constructive dismissal occurs when your employer makes a significant change to your job — and you’re forced to quit as a result.
Even though you technically resign, the law treats your departure as a termination, which means you could be owed up to 24 months of severance pay.
Common examples of constructive dismissal in Ontario include:
- A significant cut in pay or reduction in hours
- A demotion or change in job title or responsibilities
- A forced relocation far from your current workplace
- A toxic or unsafe work environment, including bullying or harassment
✅ Definition: Constructive dismissal is when an employee quits because their employer made a major, unwanted change to the terms of their job. The law considers it a termination — not a resignation.
Don’t Quit Without Legal Advice
Before making any decisions, speak to an experienced constructive dismissal lawyer in Ontario.
Quitting too early, or without the right documentation, could cost you your right to severance — which may include salary, bonuses, commissions, benefits, and more.
📲 Use our free Ontario Severance Pay Calculator to find out what you’re really owed.
🟢 WATCH: Employment lawyer Lior Samfiru explains constructive dismissal in Ontario on the Employment Law Show.
TL;DR – Quick Summary for Ontario Employees
- Constructive dismissal happens when an employer makes a major change to your job and you resign because of it.
- Even if you quit, the law may treat it as a wrongful dismissal, with full severance owed.
- Severance can be up to 24 months’ pay for non-unionized employees in Ontario.
- Examples include: pay cuts, demotion, relocation, harassment, or forced schedule changes.
- Always talk to an employment lawyer first. Quitting without advice could hurt your ability to claim compensation.
Signs of Constructive Dismissal in Ontario
If your employer has made a major change to your job without your consent, you may be experiencing constructive dismissal.
Here are the most common signs and examples of constructive dismissal in Ontario:
- Significant pay cut or commission reduction
- Demotion or loss of job title, authority, or responsibilities
- Forced relocation or being required to work far from your usual location
- Major schedule change, such as being moved from days to nights
- Unjustified suspension, with or without pay
- Temporary layoff — even if it’s labeled as “temporary,” it can still be a dismissal
- Toxic workplace, including bullying, harassment, or discrimination
- Refusal to accommodate a medical condition or disability
- Excessive workload, micromanagement, or unreasonable performance demands
⚠️ Even if your salary hasn’t changed, you can still be constructively dismissed if your work environment becomes hostile or intolerable. Talk to Samfiru Tumarkin LLP today.
Can My Employer Make Changes to My Job?
In Ontario, your employer can’t make major changes to your job without your consent. If they do, it may amount to constructive dismissal — giving you the right to quit and claim severance pay.
Changes That Are Usually Legal
Some minor or contract-approved changes may be allowed, such as:
- Small adjustments to job duties
- Reasonable shift changes
- Reassignment within the scope of your contract
If your employment agreement allows certain changes, your employer may rely on that clause — but many of these clauses are poorly drafted or unenforceable.
Changes That May Lead to Constructive Dismissal
The following major changes often cross the line:
- A significant cut to your salary, commissions, or benefits
- Being demoted or stripped of key responsibilities
- Forced relocation to a different city
- Major scheduling changes (e.g. switching to overnight shifts)
- New duties that don’t match your original job
📌 If your job has changed significantly and you didn’t agree to it, speak to an employment lawyer. You may be entitled to severance pay.
How Employment Contracts Affect Constructive Dismissal
Your employment contract plays a key role in whether a change to your job is legal or not.
Some contracts include clauses that allow your employer to:
- Change your duties or responsibilities
- Adjust your salary or compensation
- Relocate you to a different office
- Temporarily lay you off
But here’s the catch — many of these clauses are vague, unenforceable, or written improperly.
Even if your contract seems to allow changes, the law still protects you from substantial or unfair modifications to your role.
⚠️ Don’t assume your contract is enforceable. Employers often rely on weak or outdated clauses that don’t hold up legally.
Have Your Contract Reviewed Before Accepting Any Change
Before agreeing to a job change — especially one that affects your pay, location, or duties — speak to an employment lawyer in Ontario.
We can:
- Review your employment contract for hidden risks
- Confirm whether your employer’s actions violate your rights
- Help you respond clearly and protect your severance entitlements
What Should I Do If My Employer Makes Major Changes to My Job?
If your job has changed significantly — and you didn’t agree to it — don’t quit right away.
Leaving too soon can hurt your ability to claim full severance pay or compensation.
Follow These Steps Before Resigning
- Don’t Resign Yet
Walking away without legal advice could weaken your constructive dismissal case. - Speak to an Employment Lawyer First
A lawyer at Samfiru Tumarkin LLP can assess the changes and confirm whether you’ve been constructively dismissed. - Put Your Objections in Writing
Let your employer know (politely, but clearly) that you disagree with the changes. Do it in writing — emails or letters are best. - Review Your Employment Contract
Some changes may appear allowed in your contract, but that doesn’t mean they’re legal or enforceable. - Document Everything
Keep a copy of all emails, memos, meeting notes, or texts about the job changes or how you’ve been treated. These records are key if you pursue a claim.
👉 Need help crafting a response or letter to your employer? We can guide you. Our legal team has helped over 50,000 non-unionized employees across Ontario.
What If I’m Dealing With a Toxic Work Environment?
A toxic workplace can be just as damaging as a pay cut or demotion — and may qualify as constructive dismissal, even if your title and salary stay the same.
Under Ontario law, your employer must provide a safe and respectful work environment. If they fail to do so, and you’re forced to resign, you may be owed severance pay and other compensation.
Signs of a Hostile or Toxic Work Environment
- Bullying, harassment, or verbal abuse
- Sexual harassment or inappropriate comments
- Unjustified discipline or micromanagement
- Being excluded or singled out
- Excessive stress, workload, or unreasonable demands
- Failure to accommodate your medical condition or disability
- Retaliation after raising concerns or complaints
📌 If your employer allows or contributes to a toxic environment, the law may treat your resignation as a termination — with severance owed.
Can I Get Severance Pay If I’m Constructively Dismissed?
Yes. If you’ve been constructively dismissed in Ontario, the law treats it the same as being fired — and you are likely entitled to full severance pay.
That includes more than just salary. Severance may also cover:
- Bonuses and commissions
- Vacation pay and overtime
- Pension and benefits
- Any other compensation you regularly received
How Much Severance Could I Be Owed?
Non-unionized employees in Ontario can receive up to 24 months’ pay, depending on:
- Your age
- Your position and responsibilities
- How long you were employed
- How hard it will be to find similar work
⚠️ Employers rarely offer full severance upfront. They often hope you’ll accept far less than what you’re truly owed — especially if you resign without legal help. Use the Severance Pay Calculator to get an estimate of what you may be owed.
Do I Have to Sign My Employer’s Severance Offer by Their Deadline?
No. You are not legally required to sign a severance offer by your employer’s deadline in Ontario.
These deadlines are often used to pressure employees into accepting less than they’re actually owed.
Here’s what you need to know:
- You have up to 2 years to pursue your full severance entitlements after being constructively dismissed
- If you sign a severance package without legal advice, you may give up the right to claim additional compensation.
- Always have an employment lawyer review the offer before signing. We often find employees are owed tens of thousands more than what’s offered.
⚠️ Once you sign, it’s usually final. Don’t rush into a bad deal! Speak to our team before agreeing to anything.
Should I Go to the Ministry of Labour for a Constructive Dismissal?
No. If you’ve been constructively dismissed, Ontario’s Ministry of Labour can only help you get your minimum entitlements—not the full severance you may be legally owed.
Here’s why it’s a mistake:
- The Ministry is limited to enforcing Employment Standards Act (ESA) minimums, which are a fraction of what you are actually owed
- Once you file a complaint with the Ministry, you lose the right to pursue full compensation through a wrongful dismissal claim.
- If you’ve already filed with the Ministry, you have only two weeks to withdraw the complaint and still take legal action.
✅ Speak to our lawyers first. We can help you recover up to 24 months’ pay through a constructive dismissal claim—far more than what the Ministry can offer.
FAQs About Constructive Dismissal in Ontario
Is Constructive Dismissal Illegal in Ontario?
Yes. Constructive dismissal is considered a form of wrongful dismissal under Ontario law. If your employer makes major changes to your job without your consent, and you resign because of it, the law may treat your resignation as a termination—entitling you to severance pay.
How Do I File a Constructive Dismissal Claim in Ontario?
You don’t need to file paperwork yourself. The best approach is to speak with an employment lawyer. They will assess your situation, advise if you’ve been constructively dismissed, and file a wrongful dismissal claim on your behalf to secure full severance.
What Proof Do I Need For Constructive Dismissal?
Keep documentation like emails, memos, performance reviews, and records of any job changes or workplace mistreatment. Written communication showing the changes were imposed without your consent is especially helpful.
Do I Need a Lawyer For Constructive Dismissal?
Yes. Without legal guidance, you may give up your right to a full severance package. A lawyer can determine if you have a case, calculate what you’re owed, and help secure a proper settlement.
What Are Some Examples of Constructive Dismissal?
Examples include: significant pay cuts, demotion, job relocation, toxic workplace conditions, forced changes to hours or duties, suspension without pay, or removal of responsibilities.
Speak to a Constructive Dismissal Lawyer in Ontario
If your job has changed significantly—or your workplace has become intolerable—you may have a strong constructive dismissal case.
At Samfiru Tumarkin LLP, our Ontario employment lawyers helped over 50,000 non-unionized employees across the province recover the compensation they’re legally owed.
Trusted By Thousands, Respected Nationwide
Our team regularly secures substantial settlements for clients forced to resign due to unfair changes.
Whether you’ve faced a pay cut, toxic work environment, or major change to your duties, we’ll guide you through every step of the process—with clarity, confidence, and results.
- 👥 Over 50,000 clients helped nationwide
- 💰 Millions recovered in compensation
- ⚖️ No win, no fee — you don’t pay unless we succeed*
- ⭐ 2,026 5-star Google reviews in Toronto (4.8 average)
- 🏆 Named one of Canada’s Best Law Firms by The Globe and Mail
*(Conditions apply. Not all cases qualify.)
Contact us now to find out how much severance you’re really entitled to. Book a consultation or call 1-855-821-5900 today.