The employer-employee relationship is supposed to be built on trust and respect. This means that employers and employees must operate in a spirit of fairness, honesty, harmony and mutual benefit; and neither of them must do anything that can destroy the trust and respect that is supposed to be shared between them. A constructive dismissal occurs when an employer behaves in a way that destroys the trust and respect in the employment relationship and the employee leaves the job as a result.
It sometimes happens that an employer intentionally tries to create an uncomfortable and intolerable (‘toxic’) working environment for an employee, in the hopes that the employee will be pushed into resigning. Employers may engage in such conduct because, even though they want a worker to leave the company, they may be fearful that if they dismiss the worker, the company may be liable to pay compensation. But if an employee leaves in response to such treatment, that may be an unfair constructive dismissal which may still result in compensation being awarded to the employee.
Five ways that an employer can constructively dismiss an employee:
Demotion to a lower position with a lower salary, without a good reason or without following disciplinary/performance procedures;
Reduction in salary without consent, or withholding salary;
Subjecting the employee to unwarranted or unfair disciplinary procedures;
Insulting, harassing, victimizing or discriminating against the employee, particularly in front of co-workers, or ignoring the worker’s complaints of those things being inflicted by co-workers or superiors.
Moving the employee to shifts that are unduly burdensome and which might have negative effects on other aspects of the employee’s life.
Whenever employees are faced with such situations, they should seek advice as soon as possible, preferably before making the decision to leave the company. There must not be any delay in seeking advice and taking action, otherwise it may be considered that the employee accepted the treatment/conditions imposed by the employer, and as a result, the employee might not be able to successfully claim constructive dismissal.