Can Constructive Dismissal Happen Due to a Breach of Fiduciary Duty?

Constructive Dismissal Happen Due to a Breach of Fiduciary Duty

If an employer engages in misconduct that damages the relationship of trust and confidence between them and their employee, it could result in constructive dismissal. The law considers this a fundamental breach of the implied term of trust and confidence that exists in all contracts of employment, irrespective of whether they expressly mention this term. However, the employee must have a ‘last straw’ before they can make a claim of constructive dismissal. This last straw must be connected to the obligation of trust and confidence and must be an event or behaviour that is so serious, severe or degrading that it renders it impossible for them to work under those conditions. It can be a single incident or a series of incidents that culminate in the ‘last straw’.

Typically, the ‘last straw’ is not something that the employee was previously aware of. It must be an event or behaviour that is so significant that it renders their job intolerable, leaving them no choice but to resign from the company in order to avoid this situation. It must also be a direct consequence of the employer’s actions or behaviour.

For example, suppose an employer reduces your salary by half and refuses to give you a reason or justification for this decision. This is intolerable working conditions and may amount to a breach of your contract. This could be considered a constructive dismissal if you have a mortgage and other financial obligations to cover, and can no longer sustain your livelihood on the reduced salary that you are now receiving.

 

Can Constructive Dismissal Happen Due to a Breach of Fiduciary Duty?

There are other examples that would also amount to a breach of your contract and, potentially, constructive dismissal such as discrimination, requiring you to work in unsafe conditions, or whistleblowing. This article is not about discussing these issues in detail, but if you feel like your employer is infringing on your rights or forcing you to leave through unfair means, it is important to raise the matter with them as soon as possible and discuss how to resolve the problem.

A court will decide on the facts of the case to determine if a complaint of constructive dismissal has been made. They will assess five different factors including: Constructive dismissal and breaches of fiduciary duty are complex concepts in employment law, each carrying significant implications for both employers and employees. Understanding whether constructive dismissal lawyer near me can occur due to a breach of fiduciary duty involves delving into the legal principles that govern these situations.

It is worth remembering that it can be difficult to prove constructive dismissal. While many people may feel that they were forced to resign through unfair circumstances, unless the court agrees with you, you are unlikely to win your claim. It is best to consult with an experienced employment lawyer if you are unsure whether you have grounds for a constructive dismissal claim. A lawyer can help you understand your rights, work out if you have a claim and, if so, how much compensation you might receive. For more information about the basics of constructive dismissal, see our article on What is Constructive Dismissal?.

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