This page provides information about constructive dismissal, which is sometimes also called "disguised dismissal," “involuntary leaving,” or "quitting with cause."
Constructive dismissal is when your employer changes or breaches the terms of your employment contract in a big way. It has to be such a drastic change that any reasonable person would think that the employer terminated the original contract and tried to impose a new one with different terms.
The change could be a single, major unilateral change to the contract, such as a drastic change to job duties, hours of work, or compensation.
It could also be a pattern of behaviour that suggests the employer no longer intends to be bound by the employment contract, such as a pattern of bullying or harassment.
If you think your employer has constructively dismissed you, contact Labour Standards as soon as possible or talk to an employment lawyer for legal advice.
How is constructive dismissal different from wrongful dismissal?
With constructive dismissal, the employer does not dismiss the employee. Instead, they impose a major change to the employment contract.
In other words, the employer doesn’t say, “You’re fired." However, they might say something like, “If you don’t like it, you can leave.”
The employer puts the employee in a position where they can either accept the change or quit their job.
A claim for constructive dismissal is similar to a wrongful dismissal claim, except the employer usually doesn’t acknowledge that they have terminated the employee.
What are the requirements for a constructive dismissal claim?
For a claim of constructive dismissal, you would need to show:
- A major breach - The employer breached the employment contract by making significant changes. A judge would look at the breach objectively, not from the employee's viewpoint. That means it’s not enough if you feel the employer breached your contract. It’s about what a reasonable person would conclude if they were in the same situation.
- Imposed without your consent—The employer’s action must be unilateral, which means the employer has made the changes without your consent.
- Without proper notice - In most constructive dismissal situations, the employer doesn’t give the employee advance notice of the change to their contract (or they provide very little notice). If your employer gives you lots of notice of the change, you will probably be unable to make a successful constructive dismissal claim. Here is more information about notice periods.
- You did not accept - You must tell your employer that you are not willing to accept the changes they made to the employment contract. You should do that in writing. If you do or say anything that shows acceptance of the change, you cannot claim constructive dismissal.
- You have quit your job - To make a constructive dismissal claim, you must leave the job promptly. If you do not quit within a reasonable period, that can count as accepting the new conditions of employment.
- You are trying to minimize the damage - You need to take reasonable steps to mitigate your loss by finding another job as soon as reasonably possible after quitting and getting back to work. In other words, you need to minimize the costs associated with your job loss
Should I consult with a lawyer?
If you think you are in a constructive dismissal situation, consulting with an employment lawyer is a good idea.
Constructive dismissal is a complicated area of law. It is mainly based on case law (past court decisions). It can be difficult to know if you are in a constructive dismissal situation. Only a lawyer can confirm that.
Also, you can only make a constructive dismissal claim if you quit your job. You will not be entitled to Employment Insurance (EI) if you quit your job without good reason. Quitting your job is a significant decision, so it makes sense to consult an employment lawyer if you have the resources.
There is no legal aid coverage for employment law issues. That means there is no way to get a free lawyer. If you want to consult with a lawyer about your case, it would have to be a lawyer in private practice (a lawyer you would pay). Employment lawyers usually don’t provide free consultations. Expect to pay the lawyer's regular hourly rate.
Will I qualify for employment insurance (EI)?
It is possible to get employment insurance (EI) if you are constructively dismissed. Service Canada uses a different term for constructive dismissal situations. They refer to constructive dismissal as a type of “involuntary leaving.”
You should apply for EI immediately, even if your employer delays filing your Record of Employment (ROE) or if you disagree with the information on it.
On your EI application, you must state that your decision to quit was involuntary.
Service Canada staff will follow up on your application to determine whether you qualify for EI. They have to decide whether your decision to quit was voluntary or involuntary.
On the Government of Canada’s website you can find:
How do I make a constructive dismissal claim?
To make a constructive dismissal claim, you must quit your job. That is a major decision. You can discuss your situation with Labour Standards, but they cannot advise you on what to do. Only a lawyer can do that.
If you choose to quit your job, the process for making a constructive dismissal claim is the same as for making a wrongful dismissal claim. Here is more information about that processmore information about that process.
What can I ask for if I make a constructive dismissal claim?
You can ask for the same things an employee would ask for if they were wrongfully dismissed. Here is more information about that.
More Information
Where can I get more information?
Labour Standards Division
Nova Scotia Department of Labour Skills and Immigration
Halifax: (902) 424- 4311
Toll-free: 1-888-315-0110
Website: novascotia.ca/lae/employmentrights/
Labour Program (federally regulated workplaces)
Employment and Social Development Canada
Halifax 902-426-4995
Sydney 902-564-7130
Toll-free: 1-800-641-4049
Website: labour.gc.ca
On the Government of Canada’s website you can find:
- Information about applying for EI
- General information about EI and voluntary leaving
- In-depth information about EI and voluntary leaving
- Information about constructive dismissal in federally regulated workplaces
You can also get information and advice by consulting an employment lawyer in private practice (a lawyer you would pay). Go here for information about finding a lawyer.
Last reviewed: May 2024