In Ontario, where an employer unilaterally changes the fundamental terms of employment, an employee may take the position that they have been “constructively” dismissed from their employment.
Where an employee is constructively dismissed, the effect is the same as if they had actually been dismissed, and the employer has the same obligation to pay reasonable notice.
Courts have determined that the following circumstances may qualify as constructive dismissal:
- reduction in pay
- reduction in hours of work
- change in duties and responsibilities
- requiring that the employee relocates to another city (unless this was provided for in the employment agreement).