Constructive dismissal is when the company reduces your pay and/or workplace responsibilities. The change has to be significant, not minor. If you were demoted and had your pay cut, then you may have a case for constructive dismissal. You need to express your disapproval of the changes to the company, and not merely accept the changes silently. If you fail to express yourself then the company could argue that you accepted the changes.
A poisoned workplace environment is also considered constructive dismissal, since you may be unable to continue working there as a result. There can be many reasons why you feel the workplace environment is poisoned, such as bullying, discrimination, harassment, etc. If there is a poisoned workplace environment such that you feel unable to continue, then you may be able to claim constructive dismissal.
In either of the above examples, you may be entitled to severance pay the same you would be as if you were wrongfully dismissed. The court does not distinguish between wrongful dismissal and constructive dismissal when determining the amount of notice / severance you may be entitled to.
In Ontario, the Employment Standards Act sets out the minimum amount of notice and severance that you should receive. Even if you did sign an employment contract, it may be unenforceable. If you did not sign an employment contract, or if the one you signed is unenforceable, then you will be entitled to notice / severance under the “common law”. The common law means case law precedents that were decided in a court.
Under the common law, how much severance you are entitled to depends on a number of factors such as your age, your education level, you workplace experience, the availability of comparable alternative employment, among other things. People often think that they are entitled to one month of severance per year of their employment. For example, if you were employed for 9 years, you would receive 9 months severance. However, there is actually no “rule of thumb” with respect to severance. There is usually a range with respect to how much severance pay someone is entitled to. The range for an employee terminated after 9 years could be as little as 5 months on the lower end to 14 months severance on the higher end for example. A person that is 35 years old with an MBA and terrific reemployment prospects, would be in the lower range of severance. A person who is 64 years old with no postsecondary education, would likely be in the higher end of the range. Further, if you were induced to leave previous employment to join the company that you just got terminated from, then the court will consider that when determining how much notice / severance you are entitled to.
Although there is not an exact formula to determine your legal entitlement under the common law, Crangle can help maximize your entitlement. Flexible rates or a contingency agreement may be an option to avoid upfront legal fees.
Call or email for a free consultation to find out if you have a legal case, and if so, how much you may be entitled to. Contingency fee arrangements may be available in appropriate cases so that you do not have to worry about paying legal fees to your lawyer.