Wrongful Dismissal
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Constructive dismissal lawyer in Toronto.
You don't have to be fired to have been dismissed. If your employer has fundamentally changed your job, such as via reduction in your pay, a demotion or unilateral unwanted change to your role, your job location, or your working conditions, you may have been constructively dismissed, and owed the same severance as if you'd been let go outright.
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Constructive Dismissal in Ontario
What can amount to constructive dismissal
There's no fixed list, and context always matters, but common examples include:
- A significant, unilateral cut to your pay or a change to how you're paid
- A demotion or a substantial reduction in your responsibilities or status
- A forced relocation that wasn't part of your original role
- A fundamental change to your hours, schedule, or compensation structure
- A toxic or harassing work environment the employer fails to address (a "poisoned" workplace)
The change generally has to be significant and go to the heart of what you agreed to. Minor adjustments, or changes your employer is genuinely permitted to make under your contract, usually won't qualify.
Constructive dismissal is one of the most fact-specific areas of employment law, and one of the easiest to get wrong on your own. Resigning over a change that doesn't actually meet the legal threshold can leave you with nothing, while waiting too long can be treated as accepting the change. Timing and strategy matter enormously.
The timing trap
How and when you respond is critical. If you keep working under the changed conditions for too long without objecting, you risk being seen as having accepted them, which can weaken or eliminate your claim. But if you walk out, you need to be confident the change genuinely crosses the line. There's also a duty to mitigate, meaning to search for new employment, in order to attempt to offset your losses.
How we help
If something at work has changed and you're not sure where you stand, we can help you:
- Assess whether what happened actually meets the legal test for constructive dismissal
- Weigh your options before you resign, so you don't forfeit your position
- Respond to your employer in a way that protects your claim
- Negotiate a severance package, or pursue a claim, if the change amounts to a dismissal
Constructive Dismissal FAQs
Common questions about constructive dismissal.
Practical, Canadian-law guidance for employees navigating a dismissal, in Toronto and across Ontario and Canada.
Yes, a significant unilateral pay cut often can be, but it depends on the size of the cut and the circumstances. A small or temporary reduction may not meet the threshold, particularly if advanced notice is provided, while a substantial cut usually does. The specifics matter, so it's worth getting advice before you act.
Effectively, claiming constructive dismissal usually means treating the employment as ended, but you shouldn't simply walk out without advice. Resigning over a change that doesn't meet the legal test can cost you your entitlements. Get advice before you resign.
It depends on what you originally agreed to. If remote work was a core, established term of your job (or a temporary perk due to COVID but has remained in place for at least 2 years or more) a sudden reversal may be a fundamental change, leading to a constructive dismissal. It's a fact-specific question worth reviewing.
Don't wait. Continuing to work under the changed terms for too long without objecting can be treated as accepting them and undermine your claim. Speak to a lawyer as soon as a significant change is imposed.
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