Legal & Regulatory · Employment
Constructive dismissal, checked against the test.
Constructive dismissal is when the employer changes your job so much that it effectively ends the contract, even though you were never told “you are fired”. Tick what happened and see how it lines up with the Supreme Court’s two-branch test.
The test (Potter, 2015 SCC 10): a unilateral change to an essential term that is a substantial breach, or conduct showing the employer no longer intends to be bound by the contract.
Inputs
How your list lines up
Tick anything that applies and press Calculate.
The two branches
In Potter v. New Brunswick Legal Aid Services Commission (2015 SCC 10) the Supreme Court described constructive dismissal as arising in two ways: a single unilateral act by the employer that breaches an essential term of the contract in a way that substantially changes it, or a series of acts that, taken together, show the employer no longer intends to be bound by the contract. In that case an indefinite suspension, imposed without reasons, was held to be constructive dismissal.
If you are constructively dismissed, you are generally treated as dismissed without cause and may be owed reasonable notice. In Matthews v. Ocean Nutrition (2020 SCC 26) the trial judge found constructive dismissal and set reasonable notice at 15 months, a finding the Court of Appeal upheld.
What people commonly document
Before acting, keep dated copies of your signed contract and any handbook, the old and new terms, emails or meeting notes where the change was announced, and your pay and benefit records. Courts look at what the contract allowed and how the employer behaved, so a clear paper trail matters. Because how and when you respond can affect your position, speak to an employment lawyer before you resign, sign anything, or keep working under new terms.
Frequently asked questions
What is constructive dismissal in Canada?
Under Potter v. New Brunswick Legal Aid (2015 SCC 10), it is either a unilateral act that substantially breaches an essential term of the employment contract, or a course of conduct showing the employer no longer intends to be bound by it.
Does a pay cut count?
A material cut to pay is a change to an essential term and is a common example, but whether it is a substantial breach depends on the size of the change and what your contract allows. This is why the checklist asks about your written contract too.
Do I have to quit to claim constructive dismissal?
The decision frames it as the employer’s conduct ending the contract, which the employee can accept and then sue. Timing and conduct matter, so get legal advice before you resign or keep working under changed terms.
What can I claim if it is constructive dismissal?
Generally the same reasonable notice as a termination without cause. In Matthews v. Ocean Nutrition (2020 SCC 26) the courts below set 15 months. Use the Bardal Factors Calculator to organise comparable cases.
Is this checklist a legal test result?
No. It tallies your ticks against the two branches and does not weigh evidence, which is what a court does.
Sources
Verified 16 October 2026. Every rate, rule and case cited here was read on the official page or court decision listed below.
Not legal or tax advice
The checklist does not decide whether you were constructively dismissed. Employment law differs by province and by contract, and outcomes depend on evidence. If a lot of money or a signed release is involved, speak to an employment lawyer (many offer short free consultations) before you sign or send anything.