July 27, 2026

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Can You File a Constructive Dismissal Claim After Accepting a Settlement Offered by Your Employer?

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File a Constructive Dismissal Claim

Constructive dismissal is an extremely serious breach of contract which can result in a significant payout to the employee. It is very difficult to prove and can only be claimed if the workplace conditions are so intolerable that an objectively reasonable person would feel compelled to resign. The legal test is that if an employer has caused you to suffer serious distress, aggravation or anxiety, and you have felt compelled to resign as a result, then they may be liable for constructive dismissal. There are a number of different factors which can be taken into account to determine whether the workplace has become so intolerable that a resignation is inevitable. These can include a fundamental breach of your contract, such as an unexpected or late change to the terms and conditions of your employment; or a series of actions which over time culminate in ‘the last straw’, such as a change to working hours, a reassignment of work to menial tasks or degrading roles, reprimanding for minor issues, harassment and bullying, and a hostile environment.

If you do decide to make a claim for constructive dismissal, then it is very important that you inform your employer of the situation as soon as possible. This prevents them from arguing that they did not know of the contractual breach and that you simply resigned because of some other reason. Alternatively, it gives them the opportunity to try and resolve the issue with you before it escalates and potentially leads to a dispute over the matter.

It is also important to resign as soon as the situation arises, rather than waiting. If you wait to resign then your employer could argue that you accepted the changes and acquiesced, which would render the contractual breach moot. The earlier that you resign, the more robust your case will be against your employer in court.

Can You File a Constructive Dismissal Claim After Accepting a Settlement Offered by Your Employer?

A qualified Toronto Constructive Dismissal Lawyer can help you understand your rights and protect your interests. They can look at the facts of your case, assess whether you have a strong claim and then advise you on the best course of action to take. They can also provide advice on the financial implications of a successful claim and how much you might be entitled to receive.

Can You File a constructive termination Claim After Accepting a Settlement? Generally speaking, it is not possible to file a constructive dismissal claim after you have accepted a settlement from your employer. However, there are some exceptions to this rule. It will depend on the circumstances of your case, such as whether you were able to reach an agreement with your employer or whether you were not employed at the time of the breach.

If you have been impacted by any of the issues mentioned above, then contact our Toronto Constructive Dismissal Employment Law Firm today to book a free consultation with an experienced lawyer. We will be able to assess your case and determine whether you have a valid claim for constructive dismissal and recommend the appropriate course of action.

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