Constructive dismissal
What is constructive dismissal?
Constructive dismissal occurs when an employee resigns because the employer has compromised their working relationship by breaching the code of conduct or the employment terms. Even though the employee resigns on their own, it is considered a forced resignation due to the serious impact of the employer's actions.
How to avoid constructive dismissal?
Maintaining a healthy work environment means steering clear of situations that could lead to constructive dismissal. Here are some ways that employers can prevent this situation from happening:
Adhere to all employment contracts
Strictly follow all the employment terms and conditions and don't make significant changes to elements like salary and role duties without consulting the employee beforehand.
Offer training programs
Provide training programs and resources that educate employees about HR policies, diversity and inclusion, harassment prevention, healthcare, and conflict management. Be sure to focus on how they can implement these concepts in real-world scenarios.
Leave the door open
Always communicate before implementing a change in employee policy, workload, or workplace. Establish feedback channels, such as surveys and suggestion boxes. This encourages employees to voice their concerns.
Address concerns promptly
After receiving feedback from the open door policy or other anonymous channels, take the complaints seriously and address them with sincerity.
Foster a respectful environment
Promote policies that prevent harassment and bullying, and offer training programs for members in leadership roles about conflict resolution and legal compliance.
What are the common issues that lead to constructive dismissal?
- Unnecessary demotion
- Significant changes in pay
- Changes in working hours or shifts
- Isolation or exclusion in meetings
- Hostile environment (harassment, bullying, etc.)
- False accusations
- Breach of trust
What are the requirements for constructive dismissal claims?
To file a strong constructive dismissal claim, the employee must provide detailed evidence. Here's a breakdown of the requirements:
- The employee must document the breach of the employee contract. This may include failure to pay wages, a significant change in job duties, workload, or shift hours, as well as instances of harassment, bullying, or a hostile environment.
- The employee must resign as a direct result of the employer's action and not due to any other reason.
- The employee shouldn't delay the resignation process; if the employee waits too long after the breach occurs, it's considered acceptance of the employer's actions. This could weaken the claims.
How to deal with constructive dismissal claims?
Dealing with constructive dismissal can be tough. Here's a breakdown of how to deal with the claim:
- Identify the breach.
- Acknowledge the claim.
- Treat the claim seriously and follow up with precision.
- Mediate and resolve the conflict.
What's the difference between constructive dismissal and termination?
Both constructive dismissal and termination involve an employee leaving the organization, but the similarities end there. Termination happens when an employer directly ends the employment contract, whereas constructive dismissal involves the employee resigning from the organization due to the employer's unacceptable actions.