Employers should be aware of which changes can safely be made to an employee's contract
Organizations are constantly changing and adjusting employee job roles and tasks to cater to the demands of the economy and industry trends. Sometimes to keep ahead and ensure business continuity, employers need to make major changes to their organization and people’s roles. This can lead to constructive dismissals.
As a result, employers should be aware of which changes can safely be made to an employee’s contract and which ones can lead to them leaving the organization.
Constructive dismissals are covered under part III of the Canada Labour Code (along with provincial employment standards). When an employer makes substantial changes to the terms and conditions of an employee’s employment contract, whether explicitly or implicitly, without the employee’s consent, the employee may resign from the company and claim constructive dismissal.
The employer has not directly fired the employee but has committed a serious breach of contract by changing vital terms and conditions to the point where an employee feels they have no choice but to resign. Examples of these changes could be a reduction in wages – usually more than 10 per cent – demotions, temporary layoffs, and other significant changes in schedule or duties.
During this situation, an employee can either accept and continue working under the new terms or they may treat their employment as having been terminated,...
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