What is Constructive Dismissal?

What is Constructive Dismissal?

From The HR Hub by WRKdefined Podcast Network

June 9, 2026 · 16 min

About this episode

This episode explores the concept of constructive dismissal in employment law and how employers can navigate restructuring without triggering legal claims.

Constructive dismissal is an often-discussed but rarely-realized part of employment law where fundamental changes to a role can lead to significant employer liability. This episode breaks down what counts as a unilateral change and how employers can navigate restructuring without triggering valid legal claims. Defining the "unilateral and fundamental" test for dismissal. Why salary reductions and demotions are primary triggers. The role of "reasonable notice" in changing contract terms. How "consideration" and signing bonuses can mitigate risk. The employee’s duty: choosing to accept or resign. The legal concept of "condoning" changes by staying too long. 00:00 Defining the concept of constructive dismissal 00:41 What constructive dismissal is not 01:31 Common triggers for valid legal claims 03:00 Performance management vs. constructive dismissal 04:48 Most common mistakes made by employers 06:02 How to restructure without legal risk 08:27 Using amendment letters and consideration 10:52 Is unilateral change ever legally defensible? 12:09 Employee options: resign or accept 13:56 Contract language and legal limitations Find Brady Website: https://www.matthewndinsdale.com/ LinkedIn…

People in this episode

Host: Andrea Adams

Guest: Brady Farmer

Topics covered

  • constructive dismissal
  • employment law
  • employer liability
  • restructuring
  • legal claims
  • contract terms

Keywords

  • constructive dismissal
  • unilateral change
  • employer liability
  • salary reductions
  • demotions
  • reasonable notice
  • contract terms
  • legal claims

Mentioned in this episode

Organizations: WRKdefined Podcast Network, The HR Hub, Matthew N. Dinsdale

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