Common use of Constructive Dismissal Clause in Contracts

Constructive Dismissal. A constructive dismissal occurs when an employer directly or indirectly pressures an employee to resign. Examples of a constructive dismissal include where an employee resigns because: the employee is told to resign or else they will be dismissed the employer has made working conditions for the employee intolerable the employer has embarked on a course of conduct deliberately aimed at making the employee resign (e.g., bullying the employee) there has been a breach of the employment agreement by the employer, or the employer has breached the duty of fair and reasonable treatment, such that the employee feels that they cannot remain in the job If an employee has been subjected to a constructive dismissal, the employee may have an actionable personal grievance (discussed below).