HRM 2600 Lecture Notes - Lecture 16: Wrongful Dismissal, Fundamental Breach, The Employer

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Constructive dismissal: when an employer commits a fundamental breach of contract, such as by unilaterally changing a key term of the contract, the employee can treat the breach as a termination. An important rule of contract law is mutual consideration. This means that both parties would be benefitting mutually i. e. fair pay and good job. Changes to an employment contract that could lead to a constructive dismissal. 2. unequal job load on the part of the employer. 1. negotiate with the employee to change the contract and give benefits as well. 2. terminate the contract while giving new requirements for a new contract. The employer or employee can terminate the employment contract by reasonable amount of notice. An employer may dismiss a non-union employee without notice if they have committed a serious breach of contract like violence. An employee may file a wrongful dismissal suit alleging a breach of contract. An employer has the right to lay off workers for economic reasons.

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