In Ontario, if your employer has made significant, unwanted changes to your job that essentially force you out of your position, you may have grounds to claim constructive dismissal Ontario. But what exactly is constructive dismissal? This guide will walk you through everything you need to know, from defining constructive dismissal to the steps you can take if it happens to you.
What is constructive dismissal Ontario?
What is considered constructive dismissal in Ontario? Constructive dismissal occurs when an employer makes substantial changes to your job or working conditions without your agreement. Think of it as an indirect form of termination, where you’re compelled to leave because your job no longer resembles the position you initially accepted.
Examples of constructive dismissal Ontario
What constitutes constructive dismissal in Ontario? Constructive dismissal doesn’t just happen in one way. Here are a few common examples where an employer’s actions could be considered constructive dismissal:
- Reduction in pay: If your salary is cut significantly without your consent, it could be grounds for constructive dismissal.
- Demotion: Being reassigned to a lower position or given fewer responsibilities without justification.
- Unilateral changes in hours: For instance, a sudden change from daytime shifts to late-night shifts without your agreement.
- Office relocation: If your office location is moved to another city, it could potentially constitute a constructive dismissal.
- Toxic work environment: When the work environment becomes intolerable or unsafe due to harassment or other issues without your employer taking action.
Legal framework for constructive dismissal in Ontario
The Employment Standards Act
In Ontario, the Employment Standards Act (ESA) serves as the foundation for employment rights, setting minimum standards for wages, work hours, leaves, and termination notices. Although the ESA doesn’t directly define constructive dismissal, it sets a clear benchmark. When an employer makes significant cuts to your pay, hours, or job responsibilities without your consent—especially below ESA minimums—this could signal constructive dismissal. However, even when changes meet the ESA’s standards, they can still count as constructive dismissal if they drastically alter the job you agreed to, thanks to additional protections offered by common law.
Common Law
Beyond the ESA, Ontario’s common law, shaped by court decisions, adds an extra layer of protection to constructive dismissal claims. While the ESA outlines the basics, common law takes a deeper look at the nature of the job, including implied expectations that are not always written in a contract. Ontario courts have shown that even if a job change is not explicitly addressed in the contract, an employee can claim constructive dismissal if those changes are substantial enough to undermine the essence of the role they were hired for. This broader view helps protect employees when the job they signed up for starts to look very different from what they’re actually doing.
What changes can my employer legally make to my job?
Employers do have some flexibility to make minor adjustments to your job to keep up with business needs but changes that strike at the core of your position—like your pay, working hours, or where you work—typically require your consent. When these changes are made unilaterally and without agreement, it may set the stage for a constructive dismissal claim. Here’s a look at what’s generally allowed and what may be crossing the line:
Changes employers can typically make without consent
- Minor adjustments to job duties: Employers can tweak your responsibilities as long as the core function of your job remains the same. For example, if your primary role is customer service, adding a few administrative tasks is usually allowed.
- Shifts within reasonable limits: Small changes to your shift times, like moving your start time up or down by an hour occasionally, are generally permissible as long as they’re reasonable and don’t significantly alter your work-life balance.
- Work process improvements: Employers can implement changes in how tasks are completed, such as introducing new tools or processes, provided they don’t drastically impact your workload or role expectations.
Changes employers cannot make without consent
- Significant pay cuts: A substantial reduction in your salary without consent goes beyond reasonable change and often qualifies as constructive dismissal. Even a partial pay cut can be significant, depending on your overall compensation.
- Demotion or reduced responsibilities: If your employer moves you to a lower role or significantly reduces your duties, it could constitute constructive dismissal, especially if it affects your career path or professional standing.
- Major changes in work location: Relocating you to a new work site far from your current location, without your agreement, can be considered a fundamental change unless your contract specifically allows it.
- Drastic schedule changes: Moving your shift hours drastically or requiring regular weekend or night shifts when these weren’t part of your original role is typically not permissible without mutual agreement.
If you’re dealing with any of these significant changes, it’s essential to understand your rights. An employment lawyer can help assess whether the changes cross into constructive dismissal territory and advise on how best to respond.
How to file for constructive dismissal Ontario
Filing for constructive dismissal isn’t as straightforward as other employment claims, but knowing the process can make a big difference. First, consult an employment lawyer to evaluate your case. Then, gather all necessary documentation, such as job descriptions, emails, and performance reviews, and file your claim with the Ontario Labour Relations Board if you choose to pursue legal action.
Examples of important constructive dismissal cases Ontario
Understanding past cases can clarify how constructive dismissal is treated in Ontario. Here are two landmark cases that set the standard:
Farber v. Royal Trust Co.: This pivotal case expanded the concept of constructive dismissal by ruling that substantial, unilateral changes to crucial elements of an employment contract—such as job title, responsibilities, or even work location—could qualify as constructive dismissal, regardless of the employee’s continued employment. This decision underscored that significant changes to a job’s fundamental terms require mutual consent.
Potter v. New Brunswick Legal Aid Services Commission: Building on earlier decisions, this case introduced a two-step test for constructive dismissal. First, the court examines whether the employer’s actions breached the employment contract. Second, it evaluates whether a reasonable person in the employee’s position would feel that the core terms of their job had been fundamentally altered. This case provided a clear standard for assessing constructive dismissal claims.
How to respond to a potential constructive dismissal
If you suspect you’re facing constructive dismissal, here are the steps to take to protect yourself and respond effectively:
1. Avoid quitting
Before making any rash decisions, such as resigning from your job during a constructive dismissal situation, it’s crucial to seek professional legal advice first. Resigning could affect your ability to pursue a constructive dismissal claim and receive appropriate compensation.
2. Document all changes
Keep a detailed record of any changes to your job that feel significant or out of line with your original role. Include dates, descriptions of changes, emails, and any relevant conversations. This documentation will be valuable if you need to file a claim.
3. Communicate with your employer
If you’re comfortable, start by discussing the changes with your employer or HR department. Ask for clarification on the reasons behind the changes and express any concerns. This open dialogue may help to resolve misunderstandings or reach a compromise.
4. Avoid acting impulsively
Avoid making any quick decisions, like resigning on the spot, as this can complicate a constructive dismissal claim. Remain professional and continue to fulfill your duties, even if the changes are frustrating.
5. Seek legal advice
Consulting an employment lawyer can help you understand your options and determine whether you have a case for constructive dismissal. A lawyer can guide you on your rights and potential next steps, helping you decide the best way to proceed.
6. Consider a formal complaint or claim
If discussions with your employer don’t lead to a resolution and the changes remain significant, you might consider filing a constructive dismissal claim. An employment lawyer can assist with the process and help you seek fair compensation.
Taking these steps allows you to respond confidently to potential constructive dismissal, protecting your career and financial well-being.
Constructive dismissal Ontario severance: Can I get severance if I am constructively dismissed?
Absolutely! If you successfully prove your constructive dismissal case, you’re entitled to severance, just like in a standard termination. The amount you receive will depend on various factors, including your tenure, age, position, and any specific terms outlined in your employment contract.
According to Ontario’s Employment Standards Act (ESA), the minimum severance pay you may receive ranges from one week to 26 weeks. However, depending on the unique details of your case, you could be eligible for up to 24 months (two years) of pay, as determined by our courts under ‘common law.’
An experienced employment lawyer can assist you in securing a fair severance package through a wrongful dismissal claim in Ontario.
At Resolute Legal, our team has decades of experience successfully obtaining substantial constructive dismissal settlements across Ontario. Don’t hesitate to reach out to us today!
Constructive dismissal Ontario settlements
Constructive dismissal cases often end in settlements. These settlements can vary widely depending on the specifics of the situation, but many employees negotiate fair compensation without going to court. Understanding the factors that affect settlement amounts can help you and your lawyer strategize for a favourable outcome.
How to write a constructive dismissal resignation letter Ontario
A constructive dismissal resignation letter formally ends your employment while documenting the reasons you’re leaving. The letter should be clear and factual, outlining the specific changes that led to your decision. Here’s a general structure for your resignation letter:
- State the reasons for your resignation.
- Describe the key changes made to your job without your consent.
- Specify the date of resignation.
Please don’t attempt to write a resignation before seeking legal advice first! Quitting may impact your ability to claim constructive dismissal and get adequate compensation.
Final thoughts on constructive dismissal Ontario
Constructive dismissal claims can be complex, but understanding your rights is the first step toward standing up for yourself in the workplace. Remember, Ontario law protects employees from significant job changes that force them to leave involuntarily. If you feel like your job’s essential terms have been altered without your agreement, you may have a claim worth pursuing.
Contact us
If you’re dealing with potential constructive dismissal or a toxic work environment, don’t hesitate to take action. At Resolute Legal, our team of experienced employment law attorneys are here to help you navigate your situation and protect your rights.
Contact us today at (888) 480-9050 or schedule a free consultation. Let us assist you in understanding your options and ensure you receive the support and compensation you deserve. You don’t have to face this alone—reach out to us for the guidance you need!
Related reading:
- What is Wrongful Termination Canada?
- Termination With Cause Ontario
- Termination Without Cause Ontario
- Frustration of Contract Ontario
FAQ: Ontario constructive dismissal
Should I go to the Ministry of Labour if I’m constructively dismissed?
The Ministry of Labour can address certain employment issues, but for constructive dismissal cases, consulting an employment lawyer is often more effective. Legal guidance can help you get the severance or settlement you deserve and navigate the complexities of your case.
Can my employment contract affect my severance pay?
Yes, it can. Employment contracts may contain clauses that impact your severance pay eligibility, so it’s essential to understand your contract’s terms and seek advice on how they might apply to your situation.
Is a toxic work environment considered a constructive dismissal?
Yes, a toxic work environment can be grounds for constructive dismissal if it fundamentally changes your working conditions to the point where it forces you to leave. A constructive dismissal occurs when an employer’s actions—whether through harassment, lack of action on workplace bullying, or creating an intolerable atmosphere—make your job feel unrecognizable or unbearable. Courts in Ontario recognize that an employee shouldn’t have to endure a hostile or unsafe workplace, and if your employer doesn’t take reasonable steps to address these issues, you may have grounds to file a claim. In these cases, documenting instances of harassment or any efforts you’ve made to resolve the situation with your employer can strengthen your case.
If you’re facing a toxic work environment that’s affecting your health or well-being, don’t wait. Contact Resolute Legal today at (888) 480-9050 to speak with an employment lawyer who can help assess your situation. With the guidance of an experienced lawyer, you’ll better understand your rights, the steps you need to take, and whether you have a valid constructive dismissal claim.