How to Avoid Constructive DismissalsNow, more than ever, businesses are modifying and evolving in order to keep up with changes in social and industry trends, work environments, office locations, and the economy.  Generally, your business evolving is a good thing and means you’re doing well but major changes to the organization of your business can also lead to constructive dismissals. As an employer, you need to be aware of how to make changes at work, without forcing employees out. 

What is Constructive Dismissal? 

It’s no secret that hiring and firing are pretty common and well-known practices while running a business. What is less talked about are constructive dismissals. A constructive dismissal happens when a unilateral change made to an employee’s contract or overall employment relationship is so significant that it basically breaks the contract.  A change leading to a constructive dismissal claim must be fundamental and done without the employee’s agreement, leaving the employee feeling like their only option is to resign and sue for breaking that contract. 
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update your employment contracts
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Why Employment Contracts are Good

Our readers are probably sick of hearing us go on about employment contracts, but we will never stop recommending them!

An employment contract gives both employers and employees certainty about their entitlements both with respect to compensation and also on exit. 

Whether terms are written down or not, employment relationships will be governed by various terms. In the absence of a contract, courts read in implied terms of employment from the common law. It’s better to get those terms written down so you actually know what they are and don’t have to wait for a judge to tell you! 
Continue Reading Why you should update your employment contracts and why January is a good time to do so

free employment contract checklistAre your Employment Contracts Up-to-Date for 2022?  Not sure where to begin? 

Get a copy of our FREE Employee Contract Checklist

The checklist outlines affordable DIY contract options for small employers:

  • brainstorm what needs to be included in your contracts
  • cross-reference with any contracts you may already have in place
  • identify areas to add, remove and/or update


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Constructive Dismissal and the IDEL
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At long last, the impact of Ontario’s Infectious Disease Emergency Leave (IDEL) on employee constructive dismissal claims has been litigated. Employment lawyers have been speculating for a long while about how courts will treat the various employment pivots employers were required to make during the pandemic. We now have our first answer. 

Last week, the Ontario Superior Court of Justice released its decision in Coutinho v. Ocular Health Centre Ltd. and ruled that the IDEL does not take away an employee’s ability to sue for constructive dismissal. 

What’s Constructive Dismissal?

A constructive dismissal occurs when an employer unilaterally and substantially changes an express or implied term of the employee’s contract. The term also needs to have been essential. Changes regarding pay, duties, hours of work etc., can all potentially be constructive dismissals. 
Continue Reading An Important Ruling for Employers on Constructive Dismissal and the IDEL