Damages of Constructive Dismissal
Employees who successfully sue for constructive dismissal can claim damages in the form of compensation awards. These awards are designed to compensate employees for their financial losses, including any severance pay or salary continuation they were not entitled to as a result of the breach of contract. Compensation awards can also compensate for the harm caused to an employee’s reputation, which may impact their ability to find a new job and/or to maintain a stable income.
A constructive dismissal lawsuit is a serious matter and can have major consequences for both the individual involved and the company. Depending on the specifics of the case, legal disputes can be expensive and time-consuming. In addition, negative publicity surrounding a court decision against an employer can affect recruitment, customer trust and overall perception of the organization.
As a result of these potential consequences, businesses should be careful to take measures that mitigate risk when it comes to workplace changes. To do so, employers should consider obtaining an employee’s consent or sign-off for any significant changes in the workplace. Obtaining written proof of consent or agreement can help prevent an employee from successfully claiming constructive dismissal in the future. Employers should also ensure that they do not knowingly breach any express or implied terms of an employment contract, as these could be grounds for a constructive dismissal claim. For example, refusing to pay an employee contractual overtime or demoting them without cause are both examples of such breaches.
What Are the Damages of Constructive Dismissal?
Additionally, any attempt to address an employee’s concerns must be done in a timely manner and within a reasonable period of time, as failure to do so could also lead to a constructive dismissal claim. Taking proactive steps such as educating yourself on labour laws and employment contracts can also be helpful for both individuals and employers alike.
Whether you are an employee who believes that you have been constructively dismissed or you’re an employer facing an employee dispute, it’s important to seek out professional advice from a Toronto constructive dismissal lawyer near me at Bune Law. We can review your situation, explain your rights and options, and recommend an effective strategy to resolve the issue.
In the event that an employer is able to prove constructive dismissal, it can be difficult to recover compensation from an insurer. This is because insurers will often look to a constructive dismissal claim as an indication that the employer has taken advantage of their policies. As a result, they will typically assess the risk of the claim and reduce or increase their premium accordingly.
Fortunately, Paulette Haynes and the team at Bune Law are strategic problem solvers who regularly work alongside our employer clients to provide tools for managing their employees that are designed to shield them from liability. We also frequently shadow our client employers to identify any areas of concern or conflict that can be addressed proactively and prevent a constructive dismissal lawsuit from developing in the first place.