Published on: August 7, 2025
Not every dismissal is obvious. In Ontario, many employees are never officially fired — but are slowly pushed out by a toxic, hostile, or disrespectful work environment.
It often starts with small changes:
You’re being excluded from meetings.
A manager speaks to you with sarcasm or hostility.
You’re publicly criticized, undermined, or isolated.
You report the behavior — and nothing happens.
When this treatment becomes severe or ongoing, and your employer fails to take action, you may be legally justified in walking away. And if you do, it may not be considered a resignation at all.
In Ontario, this situation can meet the threshold for constructive dismissal — a legal term that applies when an employee is effectively forced to quit because their working conditions have become intolerable.
The key takeaway:
If bullying, harassment, or repeated mistreatment has made it impossible for you to continue working, you may still be entitled to severance pay and legal protection — even if you left voluntarily.
Let’s look at how constructive dismissal applies in bullying cases, and how to protect your rights if you’re experiencing this kind of pressure.
Read More:
Severance Pay for Contract Employees: Do You Still Qualify?
How Much Severance Pay Am I Really Entitled To?
I Didn’t Sign My Severance Offer—What Happens Next?
What Is Constructive Dismissal in Ontario?
Constructive dismissal happens when an employer makes significant changes to your job — or allows a toxic environment to continue — in a way that effectively forces you to quit.
In the eyes of Ontario law, that resignation may be treated as a termination.
Unlike a typical dismissal, constructive dismissal doesn’t require a formal letter or meeting. Instead, it’s based on how your working conditions change, either through:
- A serious breach of your employment terms (e.g. major pay cut, demotion, or schedule change without consent), or
- A hostile work environment where bullying or harassment goes unaddressed
For example, if you’re being harassed by a manager and your employer refuses to act after you report it, the law may consider that a breakdown of the trust required for you to safely do your job. If you resign because of it, you may still be entitled to termination pay, severance pay, or even a wrongful dismissal claim.
This is especially important when bullying is ongoing and you’ve raised concerns internally without resolution.
In short: quitting doesn’t mean giving up your rights — not if you were pushed out under conditions Ontario law doesn’t allow.
When Does Workplace Bullying Qualify as Constructive Dismissal?
Not every difficult workplace qualifies as constructive dismissal. But when bullying or harassment becomes severe, persistent, and unaddressed, it may cross the legal threshold.
To meet the standard for constructive dismissal in Ontario, the bullying must:
- Be serious enough that a reasonable person would feel they can no longer continue in their role
- Create a hostile or toxic work environment
- Be ignored or poorly handled by your employer after you’ve raised the issue
Examples of bullying that may lead to constructive dismissal:
- Repeated verbal abuse, sarcasm, or belittling comments
- Exclusion from meetings, communications, or team decisions
- Undermining your work, spreading rumours, or isolating you from colleagues
- Threats, intimidation, or public humiliation
- Management or HR refusing to investigate or take corrective action
These behaviours, especially when ongoing, may signal a breakdown of the employment relationship — something Ontario courts take seriously.
Does the ESA Protect You from Workplace Harassment?
Yes — but with limits.
Ontario’s Employment Standards Act (ESA) and the Occupational Health and Safety Act (OHSA) both recognize your right to a safe and respectful workplace. While the ESA doesn’t directly deal with bullying, the OHSA requires employers to:
- Maintain a workplace harassment policy
- Investigate all complaints of harassment or bullying
- Take reasonable steps to stop inappropriate behaviour
If your employer fails to meet these obligations, they’re not just falling short of good practice — they may be breaking Ontario employment laws.
But here’s the important part:
The ESA does not handle claims for constructive dismissal or wrongful termination.
That’s where common law protections come in — and why legal advice matters.
So while the ESA helps set basic workplace rights, constructive dismissal due to bullying is usually handled through the courts, not the Ministry of Labor. This route can result in much higher severance pay or notice entitlements than the ESA minimums.
In short, the law does offer protection — but you may need to assert those rights through a legal claim, not just a complaint to your employer or HR.
What to Do If You’re Being Bullied at Work (and Think It Might Be Constructive Dismissal)
If you’re experiencing bullying or harassment at work and suspect it’s crossing the line into constructive dismissal, take action — but take it carefully. Here’s how to protect yourself legally:
Document Everything
- Keep a detailed record of what’s happening:
- Dates, times, and descriptions of incidents
- Emails, messages, or comments made
- Any complaints you’ve made to HR or management
Documentation will be key if you decide to pursue a wrongful dismissal or severance claim.
Report It Internally (Once)
Before resigning, you usually need to give your employer a chance to fix the issue. That means formally reporting the harassment — ideally in writing. If they do nothing or retaliate, it strengthens your constructive dismissal case.
Don’t Quit Without Legal Advice
Leaving without proper legal steps can risk your termination pay, severance, or other compensation. Always speak to an employment lawyer in Ontario before making a final decision.
Understand Your Rights to Compensation
- If your resignation qualifies as constructive dismissal, you may be entitled to:
- Severance pay Ontario laws support
- Pay in lieu of notice Ontario allows under common law
- Additional damages if bad faith or mental distress is involved
Your Rights Matter — Even If You Walk Away
Leaving a job because of bullying is never easy. But if you’ve been pushed to your limit, Ontario law is clear:
A forced resignation isn’t the end of your rights — it might be the beginning.
If your working conditions have made it impossible to continue, you may be entitled to:
- Severance pay under Ontario law
- Termination pay or pay in lieu of notice
- Additional damages if your employer acted in bad faith
At Taman Singh Law, we’ve helped countless Ontario workers turn quiet suffering into clear legal action — and we do it without adding pressure.
We work on a No Win, No Fee basis
You don’t pay unless we recover compensation for you. Because standing up for yourself shouldn’t come with financial risk.
???? Email: taman@rzcdlaw.com
???? 647-360-1141
???? Offices in Brampton & Mississauga – Serving employees across Ontario
About The Author
Taman Singh is an employment lawyer with a focused practice in wrongful and severance negotiations. He is dedicated to advocating for employees and ensuring they receive the compensation they are rightfully owed. With a sha
