What is the test for constructive dismissal in Canada?

Yukon, Canada


The following excerpt is from Fraser v. Klondike Broadcasting Co. Ltd., 2002 YKSC 24 (CanLII):

The seminal Canadian case on constructive dismissal is Farber v. Royal Trust Co., 1997 CanLII 387 (SCC), [1997] 1 S.C.R. 846. Gonthier J. summarized the law in paragraph 33: Thus, it has been established in a number of Canadian common law decisions that where an employer unilaterally makes a fundamental or substantial change to an employee’s contract of employment – a change that violates the contract’s terms – the employer is committing a fundamental breach of the contract that results in its termination and entitles the employee to consider himself or herself constructively dismissed. The employee can then claim damages from the employer in lieu of reasonable notice. (My emphasis.)

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