The HR Hub

What is Constructive Dismissal?


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Constructive dismissal is an often-discussed but rarely-realized part of employment law where fundamental changes to a role can lead to significant employer liability. This episode breaks down what counts as a unilateral change and how employers can navigate restructuring without triggering valid legal claims.

  • Defining the "unilateral and fundamental" test for dismissal.

  • Why salary reductions and demotions are primary triggers.

  • The role of "reasonable notice" in changing contract terms.

  • How "consideration" and signing bonuses can mitigate risk.

  • The employee’s duty: choosing to accept or resign.

  • The legal concept of "condoning" changes by staying too long.

    00:00 Defining the concept of constructive dismissal

    00:41 What constructive dismissal is not
    01:31 Common triggers for valid legal claims
    03:00 Performance management vs. constructive dismissal
    04:48 Most common mistakes made by employers
    06:02 How to restructure without legal risk
    08:27 Using amendment letters and consideration
    10:52 Is unilateral change ever legally defensible?
    12:09 Employee options: resign or accept
    13:56 Contract language and legal limitations

    Find Brady

    Website: https://www.matthewndinsdale.com/
    LinkedIn: https://www.linkedin.com/in/brady-farmer-077235108/

    Find Andrea (me)

    Website: https://thehrhub.ca/
    LinkedIn: https://www.linkedin.com/in/andrea-adams1/


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