What is Constructive Dismissal?

Constructive dismissal is an often-discussed but rarely-realized part of employment law where fundamental changes to a role can lead to significant employer liability. This episode breaks down what counts as a unilateral change and how employers can navigate restructuring without triggering valid legal claims.

• Defining the "unilateral and fundamental" test for dismissal.

• Why salary reductions and demotions are primary triggers.

• The role of "reasonable notice" in changing contract terms.

• How "consideration" and signing bonuses can mitigate risk.

• The employee’s duty: choosing to accept or resign.

• The legal concept of "condoning" changes by staying too long.

00:00 Defining the concept of constructive dismissal 00:41 What constructive dismissal is not 01:31 Common triggers for valid legal claims 03:00 Performance management vs. constructive dismissal 04:48 Most common mistakes made by employers 06:02 How to restructure without legal risk 08:27 Using amendment letters and consideration 10:52 Is unilateral change ever legally defensible? 12:09 Employee options: resign or accept 13:56 Contract language and legal limitations

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