Can Constructive Dismissal Happen Due to Demotion?
Constructive Dismissal Happen Due to Demotion
The term “constructive dismissal” refers to the situation where an employee feels forced to resign from their job because of intolerable work conditions. These intolerable work conditions can include any number of factors, including sexual harassment, discrimination, and unwarranted disciplinary action. They can also include a significant change in an employee’s working hours (e.g., from early mornings to late evening shifts).
An employer is generally not permitted to make significant changes to a contract of employment without first seeking the consent of the affected employee. This would likely be seen as a breach of contract and could lead to the employee resigning from their job and bringing a constructive dismissal claim against the employer.
Often, it is difficult to prove an employee’s claims of a hostile work environment. Nevertheless, employees should try to document as many instances of their employer’s misconduct as possible and keep a record of any complaints made to management or HR. This will help them substantiate their case should they need to seek legal consultation or file a complaint with the appropriate authorities.
It is important that employees understand their rights and responsibilities in the workplace, and they should consult with a qualified employment lawyer as soon as they suspect that their employer is engaging in inappropriate behaviour. It is also important for employees to consider their options carefully and time their resignations so that they are not seen as breaking their employment contracts if they leave their jobs with a notice period still outstanding.
Can Constructive Dismissal Happen Due to Demotion?
For example, imagine that an employee was demoted to a less senior role as part of a department restructure and was given a significantly lower pay grade. This might not be a claimable issue for a constructive dismissal, especially where the employee has a clear understanding of the terms and conditions of their contract and the consequences of rejecting this change in work arrangements.
However, if the employer is attempting to force an employee to accept this change in work arrangement by using threats or bullying tactics, the situation may be more serious and a constructive dismissal lawyer near me claim might be justified. This is particularly the case where such behaviour is alleged to have occurred in a sexual context, as it could be seen as sexual discrimination.
It should also be noted that, even if an employee does have a claim for a constructive dismissal due to a demotion, they will not automatically receive compensation from their former employers. This is because the employer must be shown to have broken an employment contract or otherwise acted in breach of their statutory rights.
This Fact Sheet is one of a series of Employment Law fact sheets produced by JobWatch and should be read in conjunction with the other fact sheets in the ‘Unfair Dismissal’, ‘General Protections Dispute – Termination Claim’ and ‘Notice of Termination’ categories. If you need more information or advice, please contact JobWatch, your union, or a wrongful termination lawyer.
