What constitutes constructive dismissal in common law?

Ontario, Canada


The following excerpt is from Hans Oesch v Landmark Bus lines (formerly Sinton) and Director of Employment Standards, 2021 CanLII 50164 (ON LRB):

19. In Farber v. Royal Trust Co., 1997 CanLII 387 (SCC), [1997] 1 S.C.R. 846, at paragraph 33, Gonthier, J. described what constitutes constructive dismissal. … [I]t 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. …

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