If you’re an employee in Alberta and have ever felt forced to leave your job due to your employer’s actions, this could be considered constructive dismissal.
Constructive dismissal occurs when an employer makes significant changes to your job or creates an environment so difficult that you feel you have no choice but to resign. This can be a tactic employers use to avoid paying severance.
You may be wondering: Is constructive dismissal legal in Alberta? We’ll answer that in this article and share key indicators of constructive dismissal and what protections are available to employees in these situations.
What Is Constructive Dismissal in Alberta?
In Alberta, constructive dismissal happens when an employer’s actions or changes to your job make it impossible for you to continue working, leaving you with no choice but to resign. Even though you technically quit, the law may treat it as a dismissal caused by the employer, which could entitle you to compensation.
Examples of Constructive Dismissal in Alberta
Here are a few examples that demonstrate what constructive dismissal can look like:
- You suddenly find out your role will be drastically changed with no prior warning or agreement.
- Your salary is reduced with no prior notice or explanation.
- You are unexpectedly reassigned to a lower position with fewer responsibilities.
- You are bullied or harassed at work and your boss doesn’t take action to stop it.
If your employer creates conditions that make it extremely difficult to continue your employment and lead you to resign, you may have a legal right to claim compensation.
Constructive Dismissal vs. Resignation
It’s important to distinguish between constructive dismissal and resignation:
Resignation
You leave your job voluntarily, usually for personal reasons or because you’re unhappy, but not due to your employer’s actions.
Constructive dismissal
While you technically resign, the employer’s actions force you to quit, making it legally equivalent to being dismissed.
If you resign because of your employer’s behaviour, it may be considered a constructive dismissal.
Signs of Constructive Dismissal
If you’re unsure whether your situation qualifies as constructive dismissal, there are several signs to look out for. These may indicate that your employer’s actions are making it impossible for you to continue working under the same conditions.
1. Significant changes to your job role
- Your employer drastically changes your duties or reassigns you to a much lower position without your consent.
2. Reduction in pay or benefits
- A sudden, unexplained decrease in salary or benefits.
3. Unilateral alterations to working conditions
- Changes such as new work hours, relocation, or modifications to your job that are not agreed upon.
4. Harassment or discrimination
- You are subjected to bullying, discrimination, or ongoing harassment, and your employer fails to address it.
5. Failure to provide support or resources
- Your employer stops providing the necessary tools, training, or support to perform your job effectively.
Legal Framework for Constructive Dismissal in Alberta
Unlike many aspects of employment law, constructive dismissal is not governed in the Employment Standards Code or the Alberta Human Rights Act. Instead, the law surrounding constructive dismissal is established by prior court cases under the common law. However, legislation that protects employees from unfair treatment may impact a constructive dismissal claim when an employee is forced to resign due to their employer’s actions.
Protections Under Alberta’s Employment Standards Code
The Employment Standards Code sets minimum standards for employment in Alberta, such as:
- Pay and benefits
- Working hours
- Leave entitlements
While the Code doesn’t directly address constructive dismissal, there are some legal precedents that indicate these statutory protections are implied terms of employment contracts. As such, if an employer violates these standards, it may give the employee grounds for a constructive dismissal claim.
Protections Under the Alberta Human Rights Act
If an employee faces harassment or discrimination, the Alberta Human Rights Act provides protection. If the employer fails to address these issues, discriminatory conduct may support a claim of constructive dismissal.
Legal Remedies for Constructive Dismissal
Even though an employee resigns, the law may treat this as a dismissal initiated by the employer. This can entitle the employee to the same remedies that are available if their employment is wrongfully dismissed.:
Is Constructive Dismissal Legal in Alberta?
Now, to answer the question: Is constructive dismissal legal in Alberta?
The more important question is what are the consequences of constructive dismissal. If an employer’s actions force an employee to resign, and it is found to be constructive dismissal, the employee is entitled to remedies such as severance pay.
Why You Should Consult a Lawyer
Determining whether the changes to your role or work environment amount to constructive dismissal can be complicated. Consulting an employment lawyer is crucial to understand your rights and to determine if you have a valid claim. It is also important to act as quickly as possible. A lawyer can help assess your case, explain your options, and guide you through the legal process.
What to Do If You Think You’re Being Constructively Dismissed
If you think you are being constructively dismissed, here are the key steps you should take:
1. Document everything
- Keep detailed records of the changes or actions your employer is making that could lead to your resignation (e.g., changes to your role, pay, or work environment).
- Save any emails, memos, or communications related to these changes.
2. Review your employment contract
- Look at the terms of your employment agreement to see what your rights are and whether the changes made by your employer violate any agreed-upon terms.
3. Consult a lawyer
- Speak with an employment lawyer who can help you determine whether your case qualifies as constructive dismissal.
- A lawyer will assess the severity of the changes or actions and guide you on the best course of action, including communicating your concerns with your employer.
4. Act quickly
- Time limits apply for filing a constructive dismissal claim, so it’s important to act promptly. Legal deadlines may vary depending on the specifics of your case.
Taking these steps early on can help protect your rights and ensure you pursue the appropriate legal remedies if you’ve been constructively dismissed.
When to Seek Legal Help for Constructive Dismissal
From a legal perspective, if you believe your employer is attempting to constructively dismiss you, it is generally advisable to consult a lawyer before you resign. Here’s why:
- Preserving Your Rights
If you resign without legal advice, you may inadvertently waive your rights to claim constructive dismissal and could limit your ability to pursue legal action later.
- Assessing the Situation
A lawyer can help you assess whether the changes in your work conditions (e.g., changes to your role, pay, harassment, etc.) actually constitute constructive dismissal under Alberta’s employment law.
- Negotiating a Resolution
Sometimes, legal counsel can help you resolve the issue without having to leave your job by helping you negotiate with your employer or seek accommodations.
- Timing of Your Resignation
If after consulting a lawyer, you decide that resignation is the best course of action, your lawyer will help you determine the appropriate timing and manner in which to resign, ensuring that you preserve your claim and avoid losing any potential legal remedies.
Consulting a lawyer before resigning allows you to understand your rights, gather necessary evidence, and strategize on the best way to protect your interests.
How Constructive Dismissal Can Affect Severance and Wrongful Dismissal Claims
Constructive dismissal can entitle you to severance pay. However, the exact amount depends on your employment terms and the nature of the changes made by your employer.
Consult a Lawyer to Protect Your Rights
The law around constructive dismissal is complex. Consulting with an employment lawyer can help you understand your options, protect your rights, and ensure you receive the compensation you’re entitled to.
Contact us today for a consultation to discuss your situation and make sure your rights are fully protected.
Book Your ConsultationFrequently Asked Questions
What is constructive dismissal, and how does it work?
Constructive dismissal happens when an employer makes significant changes to your job or creates an unbearable work environment, forcing you to resign. Even though you technically quit, the law treats it as a dismissal caused by the employer’s actions, which may entitle you to compensation.
Is constructive dismissal legal in Alberta?
The more important question is what are the consequences of constructive dismissal. However, employees have legal protections in the event they are constructively dismissed. While it’s a form of resignation, it’s treated as a dismissal under the law, entitling the employee to severance or other compensation.
What are common signs of constructive dismissal?
Common signs of constructive dismissal include:
-Significant changes to your role or duties
-A drastic reduction in pay or benefits
-Unilateral alterations to your working conditions
-Harassment or a hostile work environment
If any of these apply to you, it’s important to consult a lawyer to understand your rights.