What is Constructive Dismissal in Ontario?
Constructive dismissal happens when your employer makes a major change to your job without your consent — or creates a work environment that becomes toxic, unsafe, or impossible to continue working in.
Even if you resign, Ontario law may treat it as a termination without cause, meaning you could be owed full severance pay — up to 24 months’ compensation.
Common triggers include significant pay cuts, demotions, forced relocation, major schedule changes, or workplace mistreatment.
If any of this feels familiar, you may have a strong constructive dismissal claim.
Quick Summary for Ontario Employees
Constructive dismissal = termination.
If your employer changes your job in a major way and you’re pushed to resign, you’re likely owed severance pay in Ontario.
Key points:
- A major change without your agreement can trigger constructive dismissal.
- Severance for non-unionized employees in Ontario can reach 24 months.
- Quitting too quickly can weaken your claim.
- You should always speak to a lawyer before resigning.
- Toxic workplaces can qualify even if your pay stays the same.
Signs of Constructive Dismissal in Ontario?
Below are the most common Ontario-recognized signs — based on real cases our firm has handled for 50,000+ employees.
1. Significant Pay Cut or Reduction in Earnings
This includes
- Salary cuts
- Reduced commissions or bonuses
- Removal of benefits
Even a smaller cut may count if it meaningfully affects your compensation.
2. Demotion or Loss of Responsibilities
Examples:
- Being moved from days to nights
- Significant increase in workload
- Duties unrelated to your original role
4. Forced Relocation
If your employer moves you far from your current workplace — especially if it increases travel time or costs — it may qualify.
5. Toxic or Unsafe Work Environment
This includes:
- Harassment
- Bullying
- Discrimination
- Micromanagement
- Exclusion or targeting
- Unreasonable performance demands
Your salary does not need to change for this to be constructive dismissal.
6. Unpaid or Unjustified Suspension
Ontario courts often treat these situations as termination unless they are:
- Contractually allowed, and
- Implemented fairly and with cause
7. Temporary Layoff
In many Ontario cases, a temporary layoff is considered constructive dismissal, unless your employment contract specifically permits it.
If any of this matches what you’re experiencing, talk to an employment lawyer in Ontario before taking any action.
Real Ontario Examples
These are based on real cases handled by our firm.
Example 1 — Pay Cut + Role Change
An employee’s salary was reduced by 20% and their team was reassigned. They resigned and received 14 months’ severance.
Example 2 — Abuse From Manager
A long-term employee faced bullying and humiliation during meetings. After they left, they received 17 months’ severance plus additional damages.
Example 3 — Forced Relocation
An employee was reassigned to a location 90 minutes away. The court found constructive dismissal and awarded 12 months’ pay.
These examples show how Ontario law protects non-unionized employees when work becomes impossible to continue.
Can My Employer Make Changes to My Job in Ontario?
Some changes are permitted — but many are not.
Changes That Can Trigger Constructive Dismissal
- A significant cut in pay, bonuses, commissions, or benefits
- Removal of job duties or authority
- Forced relocation
- Drastic schedule changes
- New duties outside your job description
- Refusal to accommodate a medical condition
- Suspension without justification
- Creating or tolerating a toxic workplace
Changes That Are Usually Allowed
- Minor adjustments to duties
- Reasonable schedule tweaks
- Small operational changes permitted by your contract
Employers often rely on vague contract language — but many clauses are unenforceable.
How Employment Contracts Affect Constructive Dismissal
A contract may claim your employer can:
- Change duties
- Adjust compensation
- Relocate you
- Temporarily lay you off
But in Ontario, poorly drafted or overly broad clauses often fail in court.
Never assume your contract gives your employer unlimited power.
Before agreeing to a change, get a professional review.
What To Do Before You Quit Your Job
Quitting too early is one of the biggest mistakes employees make.
Follow These Steps First:
- Don’t Resign Yet
Even if the situation feels urgent — speak to a lawyer first. - Put Your Objections in Writing
Tell your employer you do not agree to the new terms.
This protects your rights and prevents the employer from arguing that you “accepted” the change. - Gather Documentation
Keep: Emails, texts, meeting notes, HR complaints, performance reviews - Review Your Contract
Clauses about duties, compensation, relocation, or layoffs matter — but aren’t always enforceable. - Speak With an Ontario Employment Lawyer
We’ll confirm whether you’ve been constructively dismissed and outline your severance rights.
Severance Pay for Constructive Dismissal in Ontario
If you’re constructively dismissed, you are treated as terminated without cause in Ontario.
You may be owed:
- Salary
- Benefits
- Bonuses
- Commissions
- Pension contributions
- Vacation pay
- And more
How Much Could You Receive?
Non-unionized employees in Ontario can receive up to 24 months’ pay depending on:
- Your age
- Length of service
- Position
- Difficulty finding similar work
Employers rarely offer the true amount up front.
Toxic Work Environment and Constructive Dismissal
A toxic workplace can qualify even if your title and pay stay the same.
These are red flags:
- Workplace Bullying
- Verbal abuse
- Workplace Harassment
- Sexual harassment
- Workplace Discrimination
- Micromanaging or isolating
- Targeting after raising concerns
If your employer allowed the behaviour — or caused it — the law may treat your resignation as a termination.
Should I Go to the Ministry of Labour?
No. If you pursue an ESA claim, you may give up your right to full common-law severance.
The Ministry can only award ESA minimums — a fraction of what you may be owed.
If you already filed a claim, you have two weeks to withdraw it. Always get legal advice first.
Should I Go to the Ministry of Labour?
Is constructive dismissal illegal in Ontario?
Yes. If your employer makes major changes without your consent, the law treats your resignation as a termination.
Can I sue for constructive dismissal?
Yes. You can pursue full severance through a wrongful dismissal claim.
Do I need evidence?
Documentation like emails, texts, meeting notes, and HR complaints helps your case significantly.
How long do I have to sue?
Up to 2 years from the date of constructive dismissal.
Do I need a lawyer?
Yes. These cases are complex — and quitting without advice can put your severance at risk.
🟢 WATCH: Employment lawyer Lior Samfiru explains constructive dismissal in Ontario on the Employment Law Show.
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 have helped over 50,000 non-unionized employees secure the full compensation they’re entitled to.
📞 Call 1-855-821-5900 or contact us online today.