What is Constructive Dismissal?

Can an Employer Change My Job Duties or Hours?

This question comes up often in employment law. Many employees are surprised to learn that an employer cannot simply change fundamental aspects of their job at will. Changes to duties, hours, pay, or location often arise during restructurings, slowdowns, title-only promotions, or operational shifts. While some flexibility exists in most employment relationships, there are clear legal limits. When those limits are crossed, the change may amount to constructive dismissal under Ontario employment law.

Constructive Dismissal?

What Is Constructive Dismissal?

Constructive dismissal occurs when an employer makes a fundamental change to the terms of employment without the employee’s consent. The law treats this as if the employee has been terminated, even though the employer may say the employee was not fired. In those situations, the employee may be entitled to the same severance or termination pay they would receive in a wrongful dismissal.

The key question is not whether the employer intended to force the employee out, but whether the change was so significant that a reasonable person would view the employment relationship as having been fundamentally altered.

Types of Changes Employers Are Often Allowed to Make

Not every change amounts to constructive dismissal. Employers are generally allowed to make minor or reasonable adjustments that do not substantially alter the nature of the job. This can include modest changes to job duties that remain within the same role, small scheduling adjustments, or operational changes that do not negatively affect compensation, status, or working conditions in a meaningful way.

In some cases, employers can also make more significant changes if they provide sufficient advance notice. If an employer clearly informs an employee that a major change will take effect at a future date, and that notice period is long enough to satisfy termination notice requirements, the change may be lawful.

Changes That May Trigger Constructive Dismissal

More serious changes are much more likely to cross the legal line. Reductions in salary, hourly rate, commissions, bonuses, or overall compensation frequently qualify as constructive dismissal. Significant reductions in hours, especially where income is affected, can have the same result.

Other changes can also be problematic depending on the circumstances. A move from a day shift to a night shift, a forced relocation to a different worksite that adds a substantial commute, or a demotion in responsibilities or status may all amount to constructive dismissal. Even if pay technically remains the same, stripping an employee of core duties or authority can still be a fundamental breach of the employment agreement.

Whether a particular change qualifies depends on the size of the change, the employee’s role, their seniority, and what was originally agreed to, either expressly or through long standing practice.

Does Advance Notice Make a Difference?

Yes, in some cases. An employer may be able to lawfully change fundamental terms of employment by giving advance notice equivalent to what the employee would be entitled to if they were terminated. During that notice period, the employee continues working under the old terms, and the new terms only take effect once the notice expires.

If proper notice is not given, or if the change takes effect immediately, the risk of constructive dismissal is much higher.

What Happens If Constructive Dismissal Is Established?

If a constructive dismissal occurs, the legal consequences are often very similar to wrongful termination. The employee may be entitled to severance or termination pay based on factors such as age, length of service, position, and compensation. In some cases, damages can include lost bonuses, benefits, commissions, or other forms of compensation.

Because the stakes can be significant, both employees and employers should be cautious when changes to core employment terms are proposed. Employees should not assume they must automatically accept major changes, and employers should not assume they can impose them without legal risk.

If you are facing a significant change to your job duties, hours, pay, or work location, speaking with an employment lawyer can help you understand whether the change is legally permissible and what options may be available to you.