Constructive Dismissal and Wrongful Termination

Constructive dismissal, or constructive discharge, is a modified claim of wrongful termination. It occurs when the employer wrongfully makes working conditions so intolerable that the employee resigns.

As in wrongful termination, the employer must violate the employment contract or public policy by targeting the employee. In these situations, it’s wise to get legal advice. An employment lawyer can clarify whether your employer’s actions point to constructive dismissal.

What Is Constructive Discharge?

Most states recognize the legal concept of constructive discharge, in which an employee quits because the working conditions have become so intolerable that they can no longer work for the employer. Even though the employee voluntarily quit, the employee had no reasonable alternative because of the intolerable working conditions.

The employee's resignation is overlooked for legal purposes because the employment relationship was in effect terminated involuntarily by the employer's conduct. In this situation, the resignation is treated as a firing. If the employer's actions constitute unlawful conduct or a breach of an express or implied employment contract, the employee may have a claim for wrongful constructive discharge.

Elements of a Constructive Discharge Claim

An employee can't simply quit and claim that they were constructively discharged. For example, California requires an employee to prove that:

1. Their working environment was so unusually adverse that a reasonable employee in their position would have felt compelled to resign, and
2. The employer either intended to force such resignation or had actual knowledge of the intolerable working conditions.

An employee claiming to have been constructively discharged must show that the conditions giving rise to the resignation were sufficiently extraordinary and egregious to overcome the normal motivation of a competent and reasonable employee to remain on the job.

A Pattern of Poor Work Conditions

Generally, a continuing pattern of extraordinary and egregious conduct is required before an employee's resignation will be considered a constructive discharge. A single negative evaluation or other isolated acts don't typically establish intolerable or unusually adverse employment conditions.

However, in severe situations, a single act may be enough to constitute unusually adverse conditions. One example is the employer committing a crime of violence against an employee. Another example is the employer requiring an employee to commit a crime. These are serious incidents.

How Courts Decide Constructive Dismissal Claims

Courts address whether an employer's conduct amounts to sufficiently intolerable or egregious working conditions to permit constructive discharge.

Courts focus on factors including:

• Whether the employee was requested or required to participate in illegal activity
• Whether the employer duly acknowledged or investigated the employee's complaints
• The nature of the employer's illegal conduct
• The passage of time between the allegedly illegal conduct and the employee's resignation

The Reasonable Person Standard

It's not enough for the employee to subjectively believe their working conditions are intolerable. Courts instead look at whether a reasonable person would find the conditions to be unusually egregious and adverse.

If a reasonable person working in the employee's position wouldn't find the conditions intolerable, the employee's resignation will be treated as voluntary, even if the employee believes that they can't work under the conditions imposed by the employer.

The Employer’s Knowledge of Poor Conditions

In general, to prove that the employer forced the employee to resign, an employee must show that the employer either intended to create or maintain intolerable working conditions or that the employer had knowledge of such conditions. If an employer should have known about the intolerable conditions, but didn't, a constructive discharge generally wouldn't occur.

Employees generally must notify management or someone in a position of authority of the conditions. In this way, the employer has an opportunity to correct the situation.

If the employee doesn't inform the employer, and the employer hasn't independently learned of the intolerable working conditions, the employee generally won't be able to prove a constructive discharge claim.

Consider the Limits of Employees’ Rights

Employees are typically presumed to be employed in an at-will employment relationship. This means that the employee can be terminated at any time and with or without cause.

Generally, the law doesn't require that employers treat their employees fairly or provide a stress-free environment. Instead, employers are required not to act in a discriminatory manner or in an otherwise unlawful manner.

Courts only allow employees to bring constructive discharge claims for two reasons. The first is improper or unlawful conduct on the part of an employer. The second is the employer’s breach of an employment contract.

How To Prove Constructive Dismissal

Employees have the burden of proof in legal action for wrongful termination. This means you must present enough evidence to show a clear pattern of wrongdoing.

Some examples of constructive dismissal signs include:

• Demotions, job reassignments, or pay cuts
• Unfair scheduling arrangements
• Unreasonable changes to the work environment, such as relocation or the removal of basic amenities
• Unachievable high workloads
• Negative performance reviews despite positive results and feedback
• Discrimination, bullying, or sexual harassment
• Refusal to provide proper training or equipment to fulfill job duties

A pattern of these issues could indicate a hostile work environment. They might also overlap with other serious breaches of your legal rights. For example, a constructive dismissal case could also involve break time or safety violations.

Employees may use documents, messages, and other forms of evidence to prove the intolerable conditions. They may also need to prove the employer’s knowledge. Reporting these problems to a supervisor or human resources (HR) is an important step. A record of your report can help show that the employer knew about your concerns.

Learn More About Constructive Discharge Claims: Talk to a Lawyer Today

If you need help in understanding constructive discharge law, or legal assistance in suing your employer for such a discharge, the help of a legal professional can be very useful. An attorney can help you gain clarity on your rights and take the most appropriate actions. Contact a wrongful termination lawyer to discuss your situation and learn how they can help.