Constructive Dismissal Lawyer in Toronto

When a change to your job is really a dismissal.

You don't have to be fired to be dismissed. If your employer makes a major change to your job without your agreement, or makes it impossible to keep working there, the law can treat that as a termination. That is constructive dismissal, and it can entitle you to the same notice or pay as if you had been let go.

What counts

The Supreme Court of Canada recognizes two routes.

1. A substantial change to an essential term of your job, made without your agreement. Common examples:

  • a significant cut to your pay, bonus or commission structure;

  • a demotion, or losing major responsibilities or reports;

  • a forced move to a distant location, or a major change to your hours;

  • an indefinite unpaid layoff that your contract does not allow (see Temporary Layoff).

2. Conduct showing your employer no longer intends to be bound by the employment relationship. This can include sustained harassment or abuse, humiliation, or a poisoned work environment that management allows to continue.

The test is objective: would a reasonable person in your position see the change as a fundamental break from what was agreed? Minor or temporary changes, or changes your contract allows, usually don't qualify.

Why you should get advice before you resign

Constructive dismissal claims are among the hardest in employment law to get right, and timing matters in both directions.

  • Resign too soon, and if a court disagrees that the change was fundamental, you may be found to have quit, with no entitlement to notice or severance.

  • Wait too long without objecting, and your employer may argue you accepted the change.

There is often a middle path. In some situations you can object in writing and keep working "under protest" while you get advice, which can preserve your rights. Whether that fits your situation depends on the facts.

What you may be owed

If the change amounts to constructive dismissal, you are treated as terminated without cause. That means:

  • ESA termination pay, and ESA severance pay if you qualify;

  • reasonable notice at common law, unless your contract validly limits you to the ESA minimums; and

  • in harassment cases, possibly further damages, including under the Human Rights Code where the treatment is tied to a protected ground.

What to do now

  1. Don't resign yet, and don't sign anything accepting the change.

  2. Put your objection in writing, calmly and briefly, if you don't agree to the change.

  3. Keep records: the old and new terms, emails announcing the change, pay stubs, and notes of incidents with dates and witnesses.

  4. Get advice quickly. The longer you work under new terms without objecting, the harder the claim becomes.

How we help

  1. A free 30-minute call to talk through what changed and when.

  2. An assessment, $350 plus HST. We review your contract and the change against current case law, and give you a written strategy: whether to object, negotiate, keep working under protest or treat your employment as ended.

  3. Negotiation or a claim, on an hourly retainer or, for qualifying cases, a contingency fee.

Related: Wrongful Dismissal ยท Severance Package Review

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