An employer changes the employment contract without the employee's consent.

In Canadian employment law, "constructive dismissal" occurs when an employer makes a unilateral and fundamental change to the terms and conditions of an employee's employment contract without the employee's consent. This can include a significant reduction in salary, a major demotion in duties or title, a forced relocation, or a toxic work environment. Because the employer has fundamentally breached the core of the original employment agreement, the law treats the situation as if the employer has officially terminated the employee, even if the employee is the one who formally resigns in response to the changes. If the employee refuses to accept these major new terms and leaves, they are entitled to claim damages for wrongful dismissal (such as severance pay) just as if they had been outright fired without cause. It is not "just cause" (which refers to firing an employee for severe misconduct), nor is it related to "vicarious liability" (responsibility for another's actions) or a "restrictive covenant" (a non-compete clause).