Definition - What does Constructive Discharge mean?
Constructive discharge is when an employee is not fired, but decides to leave anyway because working conditions have deliberately been made harsh or intolerable by the employer. 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 Discharge
Whether an employee is fired or whether he or she quits can be a determining factor as to whether or not he or she receives unemployment compensation. So, constructive discharge is highly relevant in employment law.
An employee who can prove that he or she quit due to constructive discharge can still potentially receive unemployment benefits. This can make a big difference for him or her financially. An employee who believes that he or she was a victim of constructive discharge can hire a lawyer to aid in the effort to prove his or her case.