An employer and employee are not married for life. One of the ways the employment relationship is severed is by constructive dismissal. This may occur when an employer acts unilaterally to change the terms or conditions of employment. Such conduct often amounts to a repudiation of the employment contract by the employer which then permits the employee to sue for damages for wrongful dismissal.
Constructive dismissal may arise in several ways. An obvious example is money. There is very little debate that a significant reduction in the remuneration of an employee will constitute constructive dismissal. An area of dispute is whether the employee was hired to perform a particular job or whether the employer may assign the employee to other duties. Many court decisions maintain that an employer does have the right to change an employee’s duties where there is no compelling evidence of the terms of the contract. However, where there is such evidence, the assignment of a new position, inferior in status and different in scope from the prior position, may amount to a demotion and hence, constitute constructive dismissal.
Another area of concern is a change in the geographic location of the workplace by the employer. The general rule is that an employer has the right to make a reasonable change in the location of the workplace provided that there is no written contract restricting relocation. In other words, an employee is not entitled to a job for life in a place of the employee’s choosing. However, the employee is entitled to reasonable compensation for the move.
The issue of day to day treatment may also be litigious. An employer owes a duty to its employees to treat them fairly and with respect. An employer who subjects employees to treatment that renders competent performance of their work impossible or continued work intolerable may be faced with a constructive dismissal lawsuit.