Constructive dismissal may occur when an employer breaches the employment contract or makes a unilateral alteration to the contract (or declares his intention to do so), and the employee leaves as a result. Constructive dismissal is not automatically an unfair dismissal, but in most cases it may be unfair, and the employee may be entitled to compensation.

Some of the common breaches by employers that have resulted in constructive dismissal are: unilaterally altering the employee’s roles and functions, demoting the employee without good reason, or reducing/not paying the employee’s salary.

The employee must take certain steps to maintain a constructive dismissal claim. For example: he must raise the issue and give the employer an opportunity to remedy the breach, outline the breach in his letter to resignation, i.e. the reason for his departure, and he must leave immediately. Any delay may be considered to be a waiver of the employer’s breach.

Download our latest Guide to see what qualifies as constructive dismissal and what steps a worker has to take to maintain his claim.