When Not To Claim Constructive Dismissal
You are wondering whether resigning and filing a claim is really the right move for you.
Resigning and filing a constructive dismissal claim is not automatically the right response to every difficult situation at work.
Some circumstances fit better with a different approach, and recognising which one you are in matters before you act. A short pause to think this through rarely costs you anything real.
When does a situation have a weaker legal foundation?
If what happened is a single unpleasant moment, rather than a change going to the root of your contract, the test is harder to meet1. A difficult conversation or one bad review, on its own, usually falls short of that standard.
This does not mean your experience was not genuinely upsetting, only that the legal bar for this particular claim sits higher than general unfairness.
Is raising the issue internally ever the better first step?
Sometimes, particularly where the relationship with your employer is not entirely broken and the problem could realistically be addressed. Raising it formally, even if nothing changes, also builds a record that can matter later if you do decide to resign.
This is worth trying before resigning in situations that are serious but not clearly at the level of a fundamental breach yet.
What if the situation is genuinely serious but you are unsure?
A lawyer can review the specific facts against the contract test before you make an irreversible decision. Getting that read early protects you from resigning too soon, or from staying too long out of uncertainty.
Is negotiating an exit ever a middle path?
In some situations, discussing a mutual separation with your employer resolves things faster than either staying unhappily or resigning and pursuing a claim. This works best where some trust still remains between you and your employer.
It is not the right fit for every situation, particularly where the breach has already caused real financial or personal harm that a quiet exit would not address.
What should you do this week?
If you have not resigned yet, read what to do before you resign and speak with a lawyer first. If you already have, you still have sixty days from your resignation date to file a Section 20 representation2, so check the deadline calculator and move promptly.
Either way, an honest conversation now is worth more than guessing at your own position alone, especially while your evidence is still fresh and easy to gather.
A lawyer can give you an honest view on whether your situation meets the standard the law sets, or whether another path fits better.
Common questions
When does a claim have a weaker foundation?
When the issue is a single unpleasant moment rather than a serious, ongoing breach of your contract terms. A lawyer can help you tell the difference before you resign over it.
Is raising the issue with HR ever a better first step?
Sometimes, especially if the relationship is not entirely broken and the issue could realistically be fixed. It can also help build your record if you do decide to resign later.
What if I already resigned without thinking it through?
It is still worth speaking with a lawyer promptly, since your sixty day window is already running. Even a resignation made quickly can sometimes still support a claim, depending on the facts.
Is staying in the role always the safer option?
Not necessarily, if the situation is genuinely serious and unlikely to improve. Safety and legal strength are two different questions, and a lawyer can help you weigh both.
Sources
- The Supreme Court in Wong Chee Hong v Cathay Organisation (M) Sdn Bhd held that constructive dismissal is judged by the contract test, whether the employer breached a term going to the root of the contract. Thomas Philip
- An employee who believes they were dismissed without just cause or excuse may file a Section 20 representation with the Director General of Industrial Relations within sixty days of the dismissal. Mah Weng Kwai & Associates
Keep reading
A lawyer can give you an honest view on whether your situation meets the standard the law sets, or whether another path fits better.