What is a constructive dismissal and what is the effect of the constructive dismissal?

British Columbia, Canada


The following excerpt is from Health Employers Association of British Columbia v. Hospital Employees Union, 2011 CanLII 20840 (BC LA):

A constructive dismissal occurs when an employer makes a unilateral and fundamental change to a term or condition of employment. Such action is regarded at law as a repudiation of employment by the employer such that the employee can treat the contract as wrongfully terminated and resign, which, in turn, gives rise on the employer’s part to provide damages in lieu of reasonable notice: Farber v. Royal Trust Co. 1997 CanLII 387 (SCC), [1997] 1 SCR 846 (SCC).

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