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Constructive Discharge

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What Is A Constructive Discharge? 

When an employee leaves a job constructively, it's because the employer made the working environment intolerable. In other words, it occurs when an employee is compelled to retire because, despite their best efforts, they are unable to accept the working environment. In the United States, involuntary resignation, which is a type of wrongful termination, is sometimes referred to as constructive dismissal.

Even if the employee was the one who quit, an involuntary separation occurs in a constructive discharge. It could initially appear to be voluntary. The employee was forced to resign due to the intolerable working conditions, nevertheless.

What "Unbearable Working Circumstances" Mean In Constructive Discharge

Uncomfortable working conditions can be caused by a variety of factors. A hostile work environment, persistent harassment or discrimination (on the basis of pregnancy, age, national origin, color, religion, gender, or any of the aforementioned categories), or hazardous working conditions are examples of this.

Constructive discharge can also occur if an employer fails to act to give reasonable accommodation to a disabled employee, forcing them to resign, or if there is retaliation against whistleblowers.

What Conditions Must Be Met By Law For A Constructive Discharge?

Constructive discharge is not expressly forbidden by any federal statute in the United States. However, since a violation of labor regulations is required under the legal definition of constructive discharge, it may give rise to judicial action.

The burden of proof in a constructive discharge rests on the employee. In most cases, the employee must provide evidence of workplace abuse. The employee's documentation of the mistreatment, their complaint to human resources, their supervisor, or management, and the fact that it continued despite their efforts to stop it, leaving them with no other option than to resign, can all serve as evidence.

The Equal Employment Opportunity Commission (EEOC) has established three-part criteria that the claim must pass in order to be valid:

A reasonable person in the complainant's position would have found the working conditions unacceptable.

The unreasonable working circumstances must be the outcome of actions taken against the complainant that constituted discrimination.

  • The unfavorable working conditions must be what led to the complainant's forced resignation.
  • A breach of one or more labor laws, such as the Family Medical Leave Act, the Americans with Disabilities Act, or any other state or federal labor law, must also be present in the unbearable working circumstances.
  • If an employee can demonstrate constructive dismissal, they may be eligible for unemployment benefits and still have the option to file a lawsuit against their company.

When Should A Constructive Discharge Claim Be Made?

Because there is a statute of limitations on filing a complaint, you must act quickly if you intend to pursue a constructive discharge complaint. It is 180 days (300 days in the U.S. with a state agency) from the day they deliver their employer their notice of resignation in the private sector. A government employee has 45 days to get in touch with an EEOC counselor.

Conclusion

In some countries, an employee must demonstrate that their employer intentionally caused or permitted a circumstance that drove them or another employee to resign in order to establish constructive discharge. It's unclear, though, if that information is necessary for constructive discharge elsewhere. It is the employer's responsibility to be aware of such conditions, so it would seem that a situation in which the employer is unaware of the intolerable working conditions would still legally qualify as constructive discharge if the conditions were deemed hostile or discriminatory. However, it is unclear whether constructive discharge can still be considered applicable if the employer is unaware of a situation in which the circumstances are not also illegal under another statute.

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HR Manager, Talent Sourcing & Acquisition - Suntory PepsiCo Beverage
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