What is a constructive dismissal?

Constructive dismissal refers to a situation where an employee resigns due to their employer's behavior, which amounts to a breach of the employment contract. This can occur when the employer imposes significant changes to the terms of employment, such as altering working conditions negatively, reducing pay without consent, or creating a hostile work environment. These actions can make it untenable for the employee to continue working, effectively compelling them to resign.

In this case, the employee seeks to assert that the resignation was not voluntary and was instead a result of the employer's actions, thus holding the employer accountable for the conditions that led to the resignation.

Economic layoffs, employer termination for misconduct, and mutual resignation agreements do not fit this definition. Layoffs and terminations are usually direct actions taken by the employer, while a mutual resignation agreement indicates a consensual decision between both parties, rather than a forced scenario due to employer breaches.