Constructive Dismissal Affect Pension Entitlements
The law recognizes that sometimes an employee may be forced to resign from their job because of unfair or wrongful conduct by their employer. If this happens, the former employee is entitled to compensation for their losses – typically consisting of severance pay and loss of income. This is called constructive dismissal, and it can be a very serious situation. It is important for employees to seek legal advice as soon as possible after they believe that their working conditions have become intolerable.
In general, the conditions that would trigger a constructive discharge claim are similar to those that would be needed to prove they were wrongfully terminated. Employees must be able to demonstrate that their employer has repudiated an essential term of the contract, which in turn has made the workplace intolerable for them. The specific nature of these conditions can vary greatly depending on the individual case. However, the essential element that must be proven is that the conditions are so intolerable that a reasonable person in their position would have felt compelled to resign as a result of them.
An employer can breach an employment contract in a number of ways, and the type of breach depends on what kind of condition has been violated. A breach of an explicit term can include a cancellation of benefits, the elimination of defined job responsibilities or reporting functions, a reduction in salary or hours worked, or any other change to the basic terms of the employment contract. An employer can also breach an implied term by creating a hostile or toxic work environment or asking workers to do dangerous work.

How Does Constructive Dismissal Affect Pension Entitlements?
While the above examples involve an explicit or implicit breach of the employment contract, the most common form of constructive dismissal involves a breakdown in the relationship of trust and confidence between employers and employees. This is usually caused by an ongoing pattern of behaviour by the employer, such as discrimination, swearing, berating, or ignoring complaints. This type of conduct can be hard to prove, but it is often a necessary ingredient in a valid claim.
Many cases of constructive termination require a fair amount of negotiation and compromise to settle. It is important to have an experienced Toronto severance pay lawyer on your side during these negotiations. It is important to remember that if you decide to quit your job to pursue a constructive dismissal claim, you must do so before you can file a lawsuit.
If you think that your working conditions are intolerable and you wish to make a claim, it is important to speak to a knowledgeable Toronto constructive dismissal lawyer as soon as possible. We can provide you with the information and guidance you need to assess whether you have a viable claim, including how much money you could receive if successful. We can then help you determine the best course of action going forward. Contact us today to schedule a consultation. Our consultations are free and confidential.




