What To Do: Employees must be careful to act in a timely fashion if they feel they have been constructively dismissed. If the employee accepts the changes for a extended period of time, the law may find that they have accepted the change and modified their employment contract accordingly.

In my personal situation a lawyer was contacted the Monday I reported to work at the location of the forced transfer. This was 5 days after it was unilaterally imposed. A consultation with a lawyer took place 2 days later ( Wed.). A letter was sent to my employer the next day (Thurs.) stating that in my view the transfer constituted constructive dismissal and I was not excepting the transfer.

You are going to be emotionally upset because of the situation, so it is important to confide with your spouse or a trusted friend, to confidentially evaluate the situation. Together review what constitutes constructive dismissal and see if your situation might fit. You need to decide whether you can live with the changes your employer has made to your employment.

If you believe constructive dismissal may have occurred and you want to pursue the issue further, it is time to talk with a good labour lawyer and have him (her) review the facts. You have to carefully weight the cost of leaving your employment and pursuing the case in court against continuing on with your present employer. You have to consider that your employer may be trying to make your employment situation so intolerable that they are hoping you will quite and they will not have to pay severance. If this is the case, your situation will only get worse. It might have nothing to do with your competence but may be a personality conflict that is not going to be resolved amiably.

Seek the advise of a competent lawyer. He or She will be able to give you an objective professional opinion.


If you do proceed, before settling talk to a tax professional. You may be able (in Canada) to allocate some of your settlement into your RRSP through a retirement allowance.
Your lawyer has to specify this in the settlement.
Also have your lawyer negotiate as much as possible in pre judgment interest, which should also not be taxable.