Losing a job is stressful enough, but what if you weren’t formally fired? In Alberta, if your employer makes significant changes to your working conditions or creates a toxic environment that forces you to resign, this may amount to constructive dismissal.
At Verhaeghe Law in Edmonton, our employment lawyers regularly help employees and employers navigate these complex situations. Understanding what constructive dismissal is—and what steps you should take if you suspect it—can make all the difference in protecting your rights.
What is Constructive Dismissal?
Constructive dismissal happens when an employer makes fundamental changes to your employment contract without your consent, leaving you no reasonable option but to quit. Even if you resigned voluntarily, the law may treat your resignation as a dismissal if the employer’s conduct effectively ended the working relationship.
Common examples include:
- Pay or benefit reductions: Cutting wages or eliminating health benefits without agreement.
- Demotions or duty changes: Stripping away authority, status, or responsibilities.
- Relocation or schedule changes: Forcing you to work unreasonable hours or move locations with little notice.
- Toxic workplace conditions: Ignoring harassment, bullying, or creating a hostile environment.
These situations can leave employees feeling trapped—work under unfair conditions or walk away. Alberta law recognizes this as an unfair choice.
Alberta’s Legal Framework for Constructive Dismissals
Constructive dismissal claims are grounded in both Alberta’s Employment Standards Code and Canadian common law.
- The Employment Standards Code sets out minimum rights, such as notice or pay in lieu of notice, but it does not cover every scenario.
- Common law provides broader protections, allowing employees to seek compensation for breach of contract if fundamental changes were made without consent.
If constructive dismissal is established, employees may be entitled to:
- Termination or severance pay, based on length of service and position.
- Compensation for lost income and benefits.
- Damages for bad faith conduct if the employer acted dishonestly or unfairly.
How to Prove Constructive Dismissal
Not every workplace change qualifies as constructive dismissal. Alberta courts use a two-part test:
- Was the change substantial? Minor adjustments to duties or hours may not count, but changes that strike at the core of the job often do.
- Did the employee accept the change? If you continue working for a long time without objection, the court may see it as acceptance of the new terms.
Because these cases are fact-specific, legal advice is critical. A lawyer can help you assess whether your situation meets the legal threshold.
What Employees Should Do if They Are Facing Constructive Dismissal in Alberta
If you suspect constructive dismissal, take steps to protect yourself:
- Document everything: Keep emails, memos, or notes about changes to your job.
- Object in writing: Let your employer know you do not agree to the change.
- Avoid resigning too quickly: Quitting without a plan or legal advice could weaken your case.
- Seek legal advice early: An employment lawyer can help you decide whether to stay, negotiate, or pursue a claim.
At Verhaeghe Law, we help employees evaluate their options and negotiate fair settlements before matters escalate to litigation. Contact us today to discuss your legal options.
What Employers Should Know
Employers also need to be cautious. Even well-intentioned changes—such as restructuring roles or adjusting responsibilities—can trigger constructive dismissal claims if not handled properly. To reduce risk, employers should:
- Communicate proposed changes openly and clearly.
- Provide written notice and seek employee consent.
- Offer compensation or incentives to offset negative impacts.
- Consult legal counsel before implementing major changes.
Our team at Verhaeghe Law advises businesses on how to manage workplace transitions while staying compliant with Alberta employment laws.
Alternative Resolutions to Constructive Dismissal Claims
Not every constructive dismissal case needs to go to court. Mediation and negotiation are often effective in reaching fair solutions, such as:
- Enhanced severance packages.
- Career transition support.
- Confidential settlement agreements that avoid reputational harm.
With legal guidance, employees and employers can often resolve disputes faster, cheaper, and with less stress than through litigation.
Questions About Constructive Dismissal? Contact Verhaeghe Law Today
Constructive dismissal cases are complex and fact-dependent. Whether you are an employee wondering if you have a claim or an employer trying to avoid liability, it’s important to get legal advice early.
Contact Verhaeghe Law’s Edmonton employment lawyers today to schedule a consultation. We can help you understand your rights, protect your interests, and guide you toward the best possible resolution.