Constructive dismissal

Constructive dismissal occurs when the employee tenders their resignation for reasons to do with the employer’s perceived or actual breach of contract. If the employer is in breach of any significant term, whether express or implied, of an employee's contract then that employee may be able to resign and claim that he or she has been constructively dismissed.

Where the employer breaches the employment contract, wrongful dismissal may occur. This is connected with the actual dismissal of the employee by the employer or the constructive dismissal of an employee.

The terms breach of contract and wrongful dismissal are sometimes seen as interchangeable.