What is the effect of a change in terms of terms and conditions in an employment contract when an employee finds that the terms of their employment contract have been changed so that they no longer exist?
British Columbia, Canada
The following excerpt is from Lewis v. Terrace Tourism Society, 2010 BCCA 346 (CanLII):
The effect of these events is accurately described by the definition of constructive dismissal endorsed by Gonthier J. in Farber v. Royal Trust Co., 1997 CanLII 387 (SCC), [1997] 1 S.C.R. 846 at para. 33: A constructive dismissal occurs when an employer makes a unilateral and fundamental change to a term or condition of an employment contract without providing reasonable notice of that change to the employee. Such action amounts to a repudiation of the contract of employment by the employer whether or not he intended to continue the employment relationship. Therefore, the employee can treat the contract as wrongfully terminated and resign which, in turn, gives rise to an obligation on the employer’s part to provide damages in lieu of reasonable notice.
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