Constructive dismissal can arise where an employee has not been fired, but has been treated in such a way that the employer’s actions allow them to assert that their employment contract has been voided. This would be the case if the employer makes a unilateral and fundamental change to a term or condition of employment, without providing reasonable notice of that change. An employee asserting constructive dismissal typically quits their job and then sues the employer for damages for wrongful dismissal.
Job changes such as unlawful layoffs or reductions in salary will often be considered constructive dismissals.
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