What Is Constructive Discharge?

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What is constructive discharge? Constructive discharge occurs when an employee is forced to quit because the employer has made working conditions unbearable. Unbearable conditions include discrimination or harassment, mistreatment, or receiving a negative change in pay or work for reasons that are not work related. An employer who harasses an employee in order to get them to resign as opposed to firing them is one attempting a constructive discharge.

Employees can resign because of constructive discharge over one situation or a collection of incidents. It helps the employee’s case if he or she resigns soon after the infraction, as the statute of limitations on pursuing compensation vary by country and state. 

Constructive Discharge and Unemployment Benefits

While employees who voluntarily quit are typically not expected to receive unemployment benefits and lose the right to sue the company for wrongful termination, constructive discharge is an exception. Because the resignation was not technically voluntary, it can be considered a termination under the law.

If you are not sure whether you're eligible for unemployment, check with your state unemployment office to determine your eligibility for unemployment compensation. If your claim is denied you will be able to appeal and explain the circumstances of your termination.

Proving a Claim

The burden of proof lies with the employee, but legal counsel and state labor departments are usually available and willing to do what they can to help the case and protect the employee.

In general, employees are expected to prove that they were mistreated at work by your employer. You are expected to document that you reached out and complained to your supervisor, human resources contact, boss, etc., but the issue persisted.

The court will want you to prove that this work environment was so brutal and intolerable that nearly any employee would quit (if they have not already).

If your resignation came a long time after the issue, you would have to explain what took you so long to leave. In general, there should be a clear description of the misconduct and the effect it had on your resignation.

Wrongful Termination

If an employee feels he or she was forced to leave a job because the employer made the job so unbearable, he or she can file a wrongful termination suit against the former employer. In this case, being compelled to quit is legally similar to being unfairly discharged.

If you believe your termination was wrongful and you have been constructively discharged or you have not been treated according to the law or company policy, you can get help. The US Department of Labor, for example, has information on each law that regulates employment and advice on where and how to file a claim.

Your state labor department may also be able to assist, depending on state law and the circumstances.

At Will Employment

At will employment means that you can quit at any time, per the rules of the company.

If you do quit without a reason, you will not have a good enough claim against your employer to seek legal action. In the case of constructive discharge, however, you are able to apply for unemployment benefits and have a case in seeking damages. If it is found that you were mistreated, according to the law, you did not voluntarily quit - you were forced.

Also Known As: constructive dismissal, constructive termination, constructive discharge, unfair dismissal

Examples: John believes he was constructively discharged when he felt compelled to quit after his boss decreased his pay and benefits for no performance-related reason.

Read More: 50+ Frequently Asked Questions About Getting Fired

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