Employers cannot alter a fundamental term of your employment without first letting you know. If they do, they put themselves at the risk of being faced with a constructive dismissal lawsuit. An employee’s salary is a fundamental term of the employment relationship. If your pay is reduced or significantly altered, you may choose to leave and claim that you have been constructively dismissed.
The remedies available to a constructively dismissed employee are common law notice. This is payment in lieu of income you would have received had you worked during the notice period. Several factors such as age, your credentials, position and continuity of service will be looked to by the courts when deciding how much damages they will award you.
In some rare circumstances, a unilateral reduction of an employee’s salary will not amount to a successful constructive dismissal lawsuit. Company’s that are facing financial hardship and who reduce the salaries of employee’s may be able to defend against these types of claims.
If your employer has significantly reduced your salary, contact top Toronto employment lawyer, Stacey Ball, to help you initiate your constructive dismissal claim. We can be reached at 416-921-7997 extension 227.