You were moved into a new role that feels like a demotion. Is it constructive dismissal?
If your employer has changed core duties, title, hours or travel without consent, you may have been constructively dismissed. Act quickly, document everything and get a lawyer.
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By Torontoer Staff
If your employer has reassigned you to a different role with a new title, removed your management responsibilities, kept your pay the same and added travel and erratic hours, those cumulative changes may amount to a constructive dismissal. You do not have to accept a fundamentally different job without consequences, but you must act carefully and promptly to preserve your options.
Employment lawyers say employers can make minor adjustments to duties, but they cannot unilaterally rewrite the essential terms of your employment. How you respond will shape whether you can claim termination pay, negotiate a settlement, or risk losing both your job and severance rights.
What constructive dismissal means
Constructive dismissal arises when an employer so fundamentally changes an employee’s job that it effectively ends the original employment contract. Changes that might be small in isolation can be significant when combined, for example removing management duties, shifting to a new field you are not hired to do, adding substantial travel and altering hours.
Your employer’s actions likely amount to a constructive dismissal and entitle you to termination pay,
Rahul Soni, employment lawyer, Soni Law Firm, Toronto
The law recognises two basic employer approaches: make minor changes and consult you, or make a material change and risk a constructive dismissal claim. If you accept the change explicitly, or silently continue working under the new terms, you may be deemed to have accepted the new arrangement.
Your immediate options
Treat time as a limited resource. You can accept the new role, or you can reject it and claim constructive dismissal. Do not resign in haste. Resigning before taking steps to preserve a claim can forfeit potential severance entitlements.
The worst thing you can do is resign in the face of this new role, and walk away from a severance package that you are likely owed,
Muneeza Sheikh, founding partner, Muneeza Sheikh Employment and Human Rights, Toronto
If you prefer to remain, a lawyer can write to your employer to challenge the fairness of the change and request reinstatement to your original role. If you prefer to leave, a lawyer will help you make a case for severance instead of simply asking for it yourself.
Steps to protect your position
- Respond in writing to the person who communicated the change, explicitly declining the material changes while remaining available to discuss options.
- Keep records of all communications, including emails, memos and meeting notes that reference the new duties, hours, travel or title.
- Do not continue working under the new terms without making clear in writing that you do not accept them, to avoid the risk of acquiescence.
- Book a consultation with an employment lawyer promptly to assess the strength of a constructive dismissal claim and the likely notice or severance entitlement.
- Consider temporary arrangements only with written confirmation that you are reserving your rights and that accepting duties is not acceptance of the new contract.
Realistic outcomes and risks
Best-case outcomes include the employer reversing the change to avoid losing you, or negotiating a severance package equivalent to reasonable notice under common law. Employers sometimes prefer to settle rather than fight a claim.
Worst-case outcomes include a court finding the changes were not substantial enough to be constructive dismissal, leaving you without a job and without severance. Constructive dismissal cases are fact-specific, and outcomes depend on your original contract, your role, and how material the changes are when viewed together.
Statutory minimums under provincial employment standards can be smaller than common-law entitlements. A lawyer can explain the gap and advise whether a claim under employment standards, a common-law claim for reasonable notice, or both, is appropriate.
Evidence that strengthens a claim
- Original job description, offer letter and any performance reviews that describe your prior duties or level.
- Clear documentation of the new duties, title, hours, travel expectations and any statements that the change is compulsory.
- Records of any complaints or requests you made about the change, and the employer’s responses.
- Any changes in who reports to you, your responsibilities for staff, and other indicators of reduced seniority or authority.
When to call a lawyer
Call an employment lawyer as soon as possible. A lawyer will help you frame your written response, assess legal options, and advise whether to trigger a negotiated exit or pursue reinstatement. They will also explain timelines, potential costs and realistic settlement ranges.
Constructive dismissal is not an automatic win, but neither is it a hopeless situation. Acting promptly, documenting the changes and securing legal advice will preserve your rights and improve your chances of a fair outcome.
If you want help finding an employment lawyer or preparing a written response to your employer, start by compiling your job offer, job description, recent performance reviews and any communications about the reassignment.
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