Constructive dismissal

Constructive dismissal occurs when an employee resigns because they find their working conditions intolerable due to the employer's conduct, such as harassment, significant changes in job duties without consent, or a hostile work environment. This type of resignation is considered a dismissal because the employee felt compelled to leave rather than voluntarily choosing to do so.

When a resignation counts as a dismissal

Under section 386 of the Fair Work Act, a person is dismissed if they resigned because they were forced to by the employer's conduct or course of conduct. That means an employee who resigns in these circumstances may be able to make an unfair dismissal or general protections claim. The question is whether the employer's conduct was the main reason for the resignation and left the employee with no real choice. For example, cutting an employee's pay without agreement and telling them to "find another job" if they don't like it could lead to a constructive dismissal claim.

Read our guide to unfair dismissal, or get Fair Work representation for employers if a claim is made.