Constructive Dismissal

Posted in Human Resource Terms, Total Reads: 1070
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Definition: Constructive Dismissal

Constructive Dismissal is an action that is taken by an employer which is considered to be detrimental to the employee’s position in the organization due to which the employee is left with no other option but to resign from the organization.


Any fundamental changes to the original contract between the employee and employer can be considered as an action towards constructive dismissal.


Example

(i) Reduction in salary or change in benefits/perks

(ii) Change in the level of responsibilities

(iii) Forced resignation

(iv) Unwarranted location transfer

(v) Demotion

 

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