Constructive dismissal occurs when a company has made working conditions so difficult that it is not possible for the staff member to remain in the position. It is a way of forcing employees out of a company without technically firing them. The person voluntarily resigns, although it is because they could not remain in their position.
When a constructive dismissal occurs, the resignation is treated as though the employee was fired as it is the company’s fault they had to leave. The employer’s actions may be investigated to determine whether there was a breach of the employment contract or unlawful conduct. In this case, the employee may be able to claim for wrongful constructive dismissal.