Definition - What does Constructive Dismissal mean?
Constructive dismissal, also called constructive termination or constructive discharge, is a term commonly used in employment law.
Constructive dismissal occurs when employee resigns involuntarily. This is usually due to the hostile work environment created by the employer for that particular employee. The environment created by the employer usually leaves employee with no option other than to resign. An employer could make a work situation intolerable by making threats, by harassing the employee, by constantly behaving in a ridiculous or lewd manner, etc.
Justipedia explains Constructive Dismissal
Whether an employee is fired or whether they quit can be a determining factor as to whether or not they receive unemployment compensation. So, constructive discharge is highly relevant in employment law. An employee who can prove that they quit due to constructive discharge can still potentially receive unemployment benefits.
Because of its unfair nature, the employees are generally protected by law against constructive dismissal. An employee has the right to file a complaint because of constructive dismissal. However, if you have an at-will relationship with your employer, you will need to learn more about constructive dismissal from a qualified employment or labor law attorney.
If an employee can show that they were wrongfully constructively terminated, they will receive monetary damages as a result because it would be impossible to believe that the situation that gave rise or merit to the claim would not continue.