If an employer unilaterally reduces your pay or reduces your hours worked, it may constitute constructive dismissal where such a reduction is to an extent that it fundamentally changes the employment relationship.
Whether a reduction in pay or work hours fundamentally changes an employment relationship depends on the specific facts. However, courts have found that certain changes are likely to be fundamental. For example, a reduction in salary of greater than 10 percent is likely a fundamental change. A significant reduction in a bonus or benefits may also equate to constructive dismissal.
Similarly, a substantial decrease (or increase) in work hours can also equate to constructive dismissal. For example, if you work full time (40 hours per week) and your employer reduces your work hours to 20 hours per week, this is likely constructive dismissal.
If you are constructively dismissed, you may be entitled to compensation, known as severance.
If you think that you have been constructively dismissed, contact us and we can help advance a claim.
Remember there are no fees unless we get you money. We conduct these types of cases on a contingency basis.