What Constitutes "Intolerable Working Conditions"?Įmployees are presumed to have an at-will relationship with their employer, which means that an employer may terminate them at any time, with or without cause. If it can be proven that the employer's actions constitute illegal conduct or a breach of a written or implied employment contract, the employee could have a binding claim for wrongful constructive discharge. As such, a constructive discharge is considered as a termination by the employer. For legal purposes, the employee's resignation is disregarded since the relationship between the employer and the employee was effectively terminated by the circumstances of the employer's poor conduct, which forced the employee to vacate their position. In accordance with employment law, most states recognize constructive discharge. The legal concept currently applies to both unionized and non-unionized employees. The NLRB developed the concept in the 1930s to impede efforts by companies who discouraged their employees from unionizing or forced unionized employees to voluntarily quit their positions. The National Labor Relations Board (NLRB) developed the concept of constructive discharge during the labor union movement in the United States. When filing their claim with their local unemployment office, the employee should explain that they were forced to resign due to employer misconduct and/or mistreatment. However, if a constructive discharge situation exists, the employee should still qualify for unemployment benefits. Normally, an employee is not eligible for unemployment compensation if they resign from their job. Instead of directly terminating the employee, the employer chooses to create working conditions that are so unbearable, or possibly even illegal, that the employee is induced to voluntarily quit their job. Updated July 14, 2020: What Is Constructive Discharge?Ĭonstructive discharge, also known as constructive termination or constructive dismissal, is a term used in employment law when an employee resigns due to an intolerable work environment created by the employer.
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