What is constructive dismissal?
Constructive dismissal arises where an employer makes unilateral and fundamental changes to the terms and conditions of employment or otherwise demonstrates an intention that they no longer intend to be bound by the employment agreement. Examples include changes to compensation or hours, job duties, reporting relationships, work location and workplace environment (including where a toxic workplace is found). In such circumstances, an employee may either accept the changes or resign under protest and claim constructive dismissal.
There are several ways employers can proactively mitigate the risk of a constructive dismissal claim. A key component is to address the implications of an operational change on employees early.
Proactive measures to mitigate the risk of a potential constructive dismissal claim
When changes in compensation, hours, position or work structure are foreseeable in an employment contract from the outset, employers may reduce their liability exposure by ensuring the terms of the agreement expressly contemplate such changes. For significant and unanticipated changes, the option to accept or decline would help mitigate liability exposure.
Where an employee accepts a change, an employer may be required to offer fresh consideration to ensure that changes in terms and conditions of employment are binding.
Quiet quitting trends
There are several employment trends related to constructive dismissal that have arisen over the past year or more. For example, you have likely heard of “quiet quitting” or the newly coined “quiet cracking” which describes a lack of fulfillment at work due to burnout of dissatisfaction in the workplace. Other methods of employee protest involve “coffee badging” or “task masking,” which assert an employee taking control of their working lifestyle through minimized in-office work or lower levels of productivity.
Employers have a duty to understand and properly address issues employees are facing. Are they due to larger institutional challenges such as burnout or mental health? What are you as an employer doing to support employees? There are also human rights considerations which remain central to the duties of an employer. Employers are legally obligated to accommodate disabled employees up to the point of undue hardship and must be cautious not to conflate protected grounds with misconduct or lack of motivation.
In sum, legal tools offer a structured and compliant framework for addressing modern disengagement trends, but they must be applied fairly, consistently and with awareness of the broader implications and contexts which today’s employees face. When thoughtfully used, these tools can reinforce productivity and legal compliance, while focusing on employee well-being and organizational resilience.
To learn more about constructive dismissal, quiet quitting and mitigation strategies, contact our labour and employment team or register for the Saskatchewan Labour Update seminar being held on:
The seminar offers clear, practical guidance to help you support your teams, manage risks and stay compliant. Our leading labour and employment lawyers will inform you of recent cases and legislative amendments and offer practical insights into how organizations can navigate complex issues while fostering an inclusive and legally compliant work environment.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.
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