Constructive Dismissal in Ontario

What is a constructive dismissal in Ontario?

Constructive dismissal in Ontario occurs when an employer makes a substantial change to an employee’s job without their consent, and they resign in protest. This could include changes to pay, work location, job duties, or hours of work. The law typically treats the resignation as a termination.

Watch the video below from the Employment Law Show and read on to learn more about constructive dismissal and your rights in Ontario.

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What are some signs of constructive dismissal?

Signs of constructive dismissal in Ontario can include:

• Significant reduction in salary or wages
• A demotion
• Changes in job responsibilities
• Changes in work location, making it difficult for the employee
• A temporary layoff
• Suspension without pay
• Forced changes in work hours or shifts
• Harassment or toxic work environment

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What changes can my employer make to my job?

Your employer can make reasonable or minor changes to your job, duties, or pay.

For example, if your employer introduces new software or technology to your job, it may be seen as a change that could be reasonably expected in the course of a business’s growth or expansion. In this case, the change may not rise to the level of constructive dismissal.

• Minor Adjustments: Employers can typically make minor adjustments to your job role or responsibilities that don’t substantially affect your employment terms. For instance, slight changes in work schedules, job tasks, or reporting relationships.
• Pre-Defined Terms: Your employment contract might have clauses allowing specific changes. Ensure you thoroughly understand these terms, as accepting the contract means you agree to them.
• Mutual Agreement: Changes can be made with your explicit agreement. Ensure any new terms are well-understood and agreed upon in writing.

Remember, it’s vital to consult an employment lawyer at our firm to understand your rights and the best course of action if substantial changes are made to your job without your consent.

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Difference between constructive dismissal and other types

Unlike straightforward terminations, constructive dismissal involves significant, unilateral changes to employment terms, essentially forcing an employee to resign. It is not a direct dismissal, like a termination without cause or for cause, but rather a substantial alteration in employment conditions that can be legally recognized as a termination.

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Employment contracts and constructive dismissals

Employment contracts are key in constructive dismissal cases. They may outline terms and conditions that allow your employer to make certain changes to your job.

It is essential to have an employment lawyer at Samfiru Tumarkin LLP review your employment contract so you can understand how it impacts your rights in certain situations, including constructive dismissal.

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How should I respond if changes are made to my job?

If significant changes are made to your job, it’s crucial to respond proactively and professionally:

• Don’t quit: Before making any hasty decisions like quitting your job amidst a constructive dismissal situation, it’s imperative to seek professional legal advice first. Resigning may impact your ability to claim constructive dismissal and get proper compensation.
• Seek Legal Guidance: Before taking any formal action, consult with an employment lawyer at Samfiru Tumarkin LLP. We successfully navigate countless constructive dismissal claims in Ontario, expertly guiding our clients through every step of the process.
• Express Your Concerns: Communicate your concerns to your employer clearly and professionally. Do this in writing, so there is a record of your response to the changes.
• Review Your Employment Contract: Examine your employment contract for any clauses that may allow the employer to make the changes that you are experiencing.
• Document Everything: Keep a detailed record of all interactions, changes, and communications concerning the modifications to your job. These documents can be essential in building a strong case if legal action becomes necessary.

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What happens if I accept a negative change to my job?

If you accept a negative change to your job (pay cut, change in hours), you may be giving your employer the right to do it again. You will no longer be able to claim constructive dismissal in the future.

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My work environment is toxic. Should I quit?

Constructive dismissal doesn’t only stem from changes to employment terms; an employer’s conduct, or even that of fellow employees, also plays a role. A toxic work environment can lead to a valid claim of constructive dismissal, allowing an employee to leave with full severance pay.

Every employee deserves a safe and healthy workplace. Tolerating a toxic environment and quitting without taking action may result in the loss of severance pay. Toxic environments can emanate from various situations like workplace harassment, undue stress, increased workload, or persistent unwarranted criticism.

If you find yourself in a hostile work environment, it’s crucial to address the issue with your employer to ensure they actively resolve the arising challenges. If internal resolutions prove ineffective, consulting an employment lawyer at Samfiru Tumarkin LLP may be necessary.

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Can I get severance if I am constructively dismissed?

Yes, if you are constructively dismissed in Ontario, you are entitled to full severance pay.

The value of the severance package is calculated by considering an employee’s age, position, and length of employment. Other factors that affect the amount you’re owed by your employer include commission, bonuses, vacation pay, overtime pay, pension, what your employment contract says and the availability of similar employment.

The minimum amount of severance pay you are entitled to could be one week’s pay up to 26 weeks. This is guaranteed by Ontario’s Employment Standards Act (ESA).

However, what you are legally owed can be as much as 24 months’ (two years) pay. This is determined by our courts, or ‘common law’.

You can use the free and anonymous Severance Pay Calculator to estimate approximately how much severance you might be owed. An employment lawyer at Samfiru Tumarkin LLP can then work to get a severance package through a wrongful dismissal claim in Ontario.

Our lawyers have decades of experience obtaining generous constructive dismissal settlements across Ontario.

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Can my employment contract affect my severance pay?

Yes, your employment contract can impact the amount of severance pay you receive after losing you in Ontario through a constructive dismissal.

Employment contracts often outline the terms and conditions for aspects like termination and severance, and they might reduce or restrict your rights. However, for these terms to be valid, they must be properly structured and worded, ensuring they meet or exceed the minimum requirements established by the ESA. Many agreements are not properly worded, rendering them unenforceable.

An employment lawyer at Samfiru Tumarkin LLP can thoroughly review your employment contract, determine what your rights are, and provide guidance on how the contract influences the severance pay you receive after losing your job.

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Do I have to sign a severance offer by my employer’s deadline?

No, you do not have to sign a severance offer by your employer’s deadline in Ontario. Employers often set deadlines as pressure tactics, aiming to push employees into accepting severance packages before fully understanding their rights.

During a termination meeting, employers might present a severance offer, pressuring employees to sign quickly by setting a limited timeframe, but remember, your entitlement to a severance package doesn’t expire at the employer’s imposed deadline. You have up to two years from the termination date to claim your full severance – as much as 24 months’ pay.

Employers can’t force acceptance of a severance package. You are entitled to have the offer reviewed by an employment lawyer at Samfiru Tumarkin LLP to ensure it meets your full entitlements. If you sign off on a severance package before we have a chance to review it, you will likely forfeit your right to review and pursue your options.

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Should I go to the Ministry of Labour if I’m constructively dismissed?

No, you should not go to the Ontario Ministry of Labour if you think you are the victim of constructive dismissal and seek compensation. The Ministry of Labour can only help you get your minimum entitlements to severance under the ESA, which could be a few weeks at most.

An Ontario employment lawyer at Samfiru Tumarkin LLP can help you pursue your full entitlements, potentially receiving up to 24 months’ pay. This could translate to tens of thousands of dollars more than what the Ministry might secure.

Here are some other things to keep in mind when you lose your job:

• You have the option to file a complaint with the Ontario Ministry of Labour for severance, or pursue a legal claim through an employment lawyer, but you can’t do both.
• If a wrongful dismissal complaint has already been submitted to the Ministry, there is a two-week window from the filing date to retract it, allowing an employment lawyer at Samfiru Tumarkin LLP to start a wrongful dismissal legal claim on your behalf.
• You can’t file a complaint with the Ministry once you start a wrongful dismissal legal claim through an employment lawyer.

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Ontario constructive dismissal lawyers

An Ontario constructive dismissal lawyer specializes in legal cases where employees feel compelled to resign due to significant, unilateral changes to their employment terms or a toxic work environment created by the employer.

At Samfiru Tumarkin LLP, our exceptional team of constructive dismissal lawyers have been pillars of strength and success for tens of thousands of clients across Ontario. With proven results and a comprehensive understanding of the legal landscape, our lawyers diligently work to safeguard your rights, ensuring you receive the appropriate guidance and support through every step of your constructive dismissal claim.

Our solid track record and dedicated approach make us a top choice for constructive dismissal cases in Ontario. We stand strong as a highly regarded and extensively reviewed law firm, delivering successful outcomes for employees faced with problems. Partnering with us guarantees steadfast legal support focused on securing your rightful severance and justice in the workplace.

Benefit from our unwavering commitment, ensuring you navigate through your constructive dismissal claim with clarity, confidence, and a powerful advocate firmly by your side.

If you are a non-unionized employee in Ontario (or Alberta and B.C.) who needs help with a constructive dismissal claim, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.