Constructive dismissal

Constructive dismissal (or constructive discharge) occurs when an employer makes working conditions so intolerable that a reasonable employee would feel compelled to resign — treating the resignation as legally equivalent to a termination for purposes of wrongful dismissal claims. The conduct triggering constructive dismissal can be a single severe act (a demotion, a significant pay cut, a harassment incident not addressed by the employer) or a pattern of lesser acts whose cumulative effect creates an untenable environment. The most important HR governance principle is acting on complaints about working conditions promptly and genuinely: organizations that document complaints but take no corrective action, then later face a constructive dismissal claim, are in the worst possible position — having evidence that they were aware of the problem and chose not to address it.