Business Law | Constructive Dismissal & Breach of Contract

Breach of contract claims can arise when one party doesn't comply with the terms of a contract. In the employment field, this can include a breach by either an employee or an employer. Common breaches by employees include failing to act in good faith and failing to comply with confidentiality. Common breaches by employers include failure to pay wages, the failure to protect an employee in the workplace (for instance from bullying or harassment), or breaching trust and confidence in the employment relationship.

A fundamental (or major) breach of contract by an employer can also give rise to a claim of constructive dismissal if an employee resigns in response to the breach.

Given the implications which arise from a breach of contract claim, including constructive dismissal claims, it is important to take advice before taking any action which may amount to a breach of an employee's contract.

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