Constructive Dismissal
If you find it necessary to dismiss a new employee, it should never be done without careful consideration. Ideally, you’ll be able to address issues with performance and behaviour during probationary reviews or meetings so that your new hire can improve and remain with the company. However, letting someone go can be a difficult and challenging process, especially when it’s during the probationary period.
The Employment Standards Act (ESA) establishes critical employment terms such as hours of work, minimum wages, leave entitlements, and termination notices. These standards are often the benchmark against which other workplace practices are measured. When an employer violates the ESA, it could constitute constructive dismissal.
Probation periods provide an ideal opportunity to evaluate an employee and assess their suitability for a permanent role. This is why it’s important to communicate the criteria for assessment at the outset of their employment, and to maintain open communication throughout the probationary period. Providing feedback that helps an employee improve is also essential, and can help avoid the risk of a claim for constructive dismissal during probation.

Constructive Dismissal During Probation
While it’s never easy to let an employee go, it’s important for businesses to be able to recruit and retain skilled staff. Having the flexibility to terminate employees during probation, rather than waiting until they’ve been on the job for a long time, can reduce training costs and minimise disruption to business operations.
A claim for constructive dismissal toronto during probation may be based on the grounds that the employee feels their employment is terminated in circumstances that amount to a fundamental breach of an express or implied term of their contract. For example, it’s considered a fundamental breach of the implied term of trust and confidence when an employer changes the employee’s duties or responsibilities in a way that creates intolerable working conditions.
If an employee believes that they have been constructively dismissed, they’re entitled to compensation for their lost income and benefits. This includes the balance of their current employment contract, as well as a reasonable estimate of the cost of finding new work. Employers should have clear and comprehensive policies in place regarding employee conduct and terminations, and should be prepared to consult an experienced employment lawyer if they’re unsure of their rights or procedures.
One of the key challenges in constructive dismissal cases lies in determining whether the employer’s actions or omissions were egregious enough to justify the employee’s resignation. This often involves subjective assessments of the working environment, the nature of the employment contract, and the individual circumstances of the case. What may be considered intolerable conditions for one employee might not necessarily be so for another.
With BrightHR, employers can have access to an employment law advice line and a large library of customisable policies and guidelines. This can make it easier to manage the delicate and complex process of a dismissal during probation, ensuring that all steps are taken in compliance with Ontario employment law. Contact us to book your free demo and learn more about how we can support your business with all things HR.
