TECHNICAL GLOSSARY

What Is Constructive Discharge?

A constructive discharge happens when an employee resigns from their job because of unreasonable conditions that a reasonable person would find might cause them to leave. Although technically the employee has resigned from their position, under employment law in America this may be classified as a termination of employment by the company and not as a voluntary act on part of the employee.
In instances where there was a constructive discharge claim made against the employer, the employer's actions (or lack thereof) caused the employee to no longer want their position. Constructive discharge claims typically arise for reasons related to discrimination, harassment, retaliation or unsafe working conditions.

Key Elements of Constructive Discharge

To prove constructive discharge under U.S. federal law, there are several factors that must be considered:
Intolerable Work Conditions:
The conditions must be objectively intolerable. A condition may be objectively intolerable if:

• There is ongoing harassment and/or discrimination;
• The work environment is unsafe/dangerous; and/or
• The workloads are excessive or unreasonable.

Employer Responsibility:

The conditions must be the result of an employer's actions or inactions. An example would be when the employer is aware or should have been aware of the condition and failed to remedy it in a timely fashion.
Employer Knowledge or Intent: In most cases, to meet the constructive discharge standard, an employee must demonstrate that the employer:

• Intended to cause the employee to quit, or
• Knew, or should have known, of the intolerable work environment and failed to remedy it.

Legal Consequences
If proven, constructive discharge allows an employee to pursue legal claims such as wrongful termination, discrimination, retaliation, or wage violations, even though they resigned.

Common Examples of Constructive Discharge

Constructive discharge can happen when an employee is forced to leave their job due to circumstances created by the employer, including:

• The employee has been repeatedly harassed by a supervisor for long periods of time, and the harassment has been reported to HR
• The employer has implemented unreasonable salary reductions or demotions;
• Employees are assigned workloads that are impossible, or required excessive overtime, without any indication of relief from their assignment
• A hostile work environment exists at the workplace and/or is allowed to continue;

Constructive Discharge vs. Constructive Dismissal

People in the U.S. use the term constructive discharge but the term constructive dismissal is used much more frequently in the U.K. and in Commonwealth countries outside the U.K., though, while both terms are similar to one another, U.S. Courts evaluate constructive discharge claims under both the Federal and State Employment Laws.

Is Constructive Discharge Illegal?

The unlawful acts mentioned do not constitute a standalone violation against employer conduct but rather require connection to some other violation (discrimination, harassment, retaliation). The employer will be liable for constructive discharge if they cause the employee’s resignation due to their actions as if they had terminated the employee directly.

To establish a valid claim for constructive discharge, the employee must prove:

1. The employee was subject to intolerable working conditions.
2. The employer created or permitted those working conditions.
3. The employee resigned from their position as a result of those intolerable working conditions.
4. The employee reasonably delayed resigning based on the employer’s actions or inactions.