Constructive Dismissal refers to a situation where an employee resigns due to their employer creating a work environment that is so intolerable or hostile that the employee feels they have no choice but to leave. This could involve significant changes to the terms of employment, such as a demotion, reduction in salary, increased workload without adequate support, or even instances of bullying or harassment. The key factor in constructive dismissal is that the employee’s resignation is not truly voluntary but rather a forced response to the employer’s actions.
Example of Use: An employee working in a manufacturing firm was subjected to a sudden and significant reduction in their responsibilities, alongside a pay cut, without any prior notice or justification. Feeling undervalued and unable to continue working under these conditions, the employee decided to resign. This situation could be considered constructive dismissal because the employer’s actions effectively forced the employee to leave.
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