Constructive Dismissal Part 2: The Tests

When it comes to Constructive Dismissal, to determine whether the employee has been constructively dismissed, there are 2 tests to consider as summarized below.

First, is The Contract Test.

If the employer is guilty of a conduct which is a significant breach of going to the root of the contract of employment, or which show that the employer no longer intends to be bound by one or more of the essential terms of the contract, then the employee is entitled to treat himself as discharged from any further performance.

The conduct must be sufficiently serious to entitle the employee to leave must be of a fundamental term.

Second, is The Unreasonable Test.

Here, the employer must act reasonable in his treatment of his employees. If he conducts himself of his affairs, so unreasonable that the employee cannot fairly be expected to put up with it longer, the employee is justified in leaving.

The employee can go with or without giving notice and claim compensation for unfair dismissal.

Now, I am sure most of us can relate to the 2nd test better i.e. The Unreasonable Test. But the question then will be under what circumstances can an employee claims that he was constructively dismissed?

The contract test or the unreasonable rest or both? And what line shall we draw between the two tests?

Aaahhh… we shall discuss about this further in my post tomorrow. So, do come follow me, @Sim Ling KU #TheAspiredCXO.

Bimbo

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