In Ontario, constructive dismissal refers to a scenario in which an employee considers himself dismissed from their employment because their employer has made fundamental changes to their employment contract. For example, a significant decrease in pay, or a demotion may constitute constructive dismissal. Where constructive dismissal has occurred, an employee can consider the employment contract as terminated and seek severance pay under the common law.
In a recent Alberta Court of Appeal decision, Kosteckyj v. Paramount Resources (2022), the court reaffirmed that an employee must decide within a reasonable time – between ten to fifteen days – whether to accept newly imposed terms of employment set by the employer or to treat the change as constructive dismissal. In this case, the Alberta Court of Appeal overturned the trial judge’s findings of a constructive dismissal claim because although Ms. Kosteckyj successfully proved she was constructively dismissed, she failed to raise her objections within a reasonable time.
If you’re considering making a constructive dismissal claim, it is crucial not to delay and to act quickly. Constructive dismissal claims can be a complex process. Our law firm has experience in constructive dismissal claims. We don’t charge fees unless we get you money.