Understanding Constructive Dismissal in Québec

If your employer slashes your salary, reduces your hours, removes key responsibilities, provided you an unwanted sales territory that is considered a demotion or creates a hostile work environment, Québec law may recognize your resignation as a constructive dismissal.

In other words, even though you technically quit and resigned, the law can treat the resignation as a firing giving you legal rights and obligations to severance, notice, and compensation.

Sometimes, leaving a job is not your choice, but a forced necessity or an unwanted decision that forces your hand.  

What Is Constructive Dismissal?

Constructive dismissal occurs when an employer makes a substantial, unilateral change to the essential terms of your employment that fundamentally breaches your employment agreement and contract.

Examples include significant pay cuts, demotions, drastically altered duties, or a work environment that becomes intolerable. 

The reasons and justifications for constructive dismissal may result from hostilities in your employment, harassment, performance issues or simply not getting along with your boss.

Under the Civil Code of Québec and section 124 under the Act respecting Labour standards, these actions can be treated as constructive dismissal even if you were never formally fired.

Québec law recognizes that employees should not be forced to continue working under conditions drastically different from those initially agreed upon under their employment.

A key Canadian case on constructive dismissal is Farber v. Royal Trust Co., [1997] 1 S.C.R. 846 (SCC).

The Supreme Court of Canada ruled that substantial, unilateral changes to an employee’s duties, pay, or status can amount to constructive dismissal.

The Court highlighted that explicit termination is not required, but rather what matters is whether the changes fundamentally alter the employment relationship, leaving the employee with no reasonable choice but to resign. This decision has guided courts across Québec and Canada in determining when a resignation should be treated as a legal dismissal.

Recognizing constructive dismissal early is critical.

Some common signs of constructive dismissal include but not limited to the following:

1. Your salary or benefits have been significantly reduced without your consent or agreement.
2. You have been demoted or stripped of core responsibilities that were central to your role.
3. You have been alienated from your current work environment causing unwanted hostilities and reduced responsibilities;
4. Your work hours or schedule have been drastically reduced, changed or altered in some form without your consent.
5. You are being subjected to harassment, intimidation, or a toxic work environment that makes it impossible to perform your job.
6. You are forced to displace yourself to a different office or location further away than your current employment office or location for no apparent reason;
7. Your boss is making unwanted demands that were never initially provided or performed during your employment, the whole without any justification or reason;
8. Your boss has given you a territory of sales that is drastically underperforming that does not align with your previous mandate, pay structure and/or responsibilities
9. You feel forced to resign because continuing under the new and modified conditions is unreasonable.

If one or several of these signs apply to your situation, it may be time to seek legal advice.

Why Timing and Documentation Matter

If you suspect constructive dismissal, acting quickly is essential.

Resigning soon after the changes can strengthen your claim, while waiting too long may be interpreted as acceptance of the new conditions.

Claim before the CNESST:

You can make a claim before the CNESST within 45 days of the dismissal.

The conditions of applicability of this recourse are as follows:

1. The aggrieved party was an employee within the meaning of section 1 para. 10 of the Act respecting Labour standards

• The ex-employee worked for a minimum duration of two years of uninterrupted service;

• The ex-employee believes they were constructively dismissed;

• The ex-employee has filed a formal complaint to the CNESST within 45 days of the constructive dismissal;

Detailed records:

Equally important is keeping detailed records.

For these reasons, it is important to document the following:

Save emails, memos, and any other documentation that shows changes to your employment, work schedule, performance or responsibilities or instances of intimidation or harassment.

Consulting a lawyer early can help confirm whether your resignation qualifies as constructive dismissal and ensures your rights are fully protected.

Québec courts and the CNESST have repeatedly upheld claims where employees were forced to resign due to substantial breaches of their employment contract, reinforcing that the law protects workers from unfair treatment and unilateral changes to their terms of employment.

Constructive dismissal is more than just a bad day at work; it is a fundamental violation of your employment contract that leaves you no reasonable choice but to resign. Recognizing it as such allows you to assert your rights, seek fair compensation, and protect your career and financial future.

With careful documentation and professional legal advice, employees can transform an untenable work situation into a claim that holds employers accountable under Québec law.

Is it time to seek an attorney to guide you through the legal process of constructive dismissal?