Are you wondering if you can sue your employer after you’ve quit your job? There’s no doubt that quitting a job can be a life-altering decision with unforeseen and awful consequences. 

But sometimes, workers are given little choice when a workplace or office environment becomes impossible to tolerate. 

Whether you’re being mistreated by coworkers or bosses or having unfavourable changes to an employment contract imposed upon you, people quitting their jobs for these reasons can hardly be said to have “quit” but instead forced out and made to leave an intolerable situation.

It’s a common and troubling situation in many workplaces and industries and many people ponder a common question after leaving a job: can I sue my employer after I quit? 

For many employees in untenable situations, quitting a long-term career position with a pension and benefits package can be personally and professionally devastating.

After years of gaining knowledge and experience with a company, non-profit, or government organization, quitting due to unreasonable demands, leadership changes, or workplace harassment can be frightening and unimaginable.

But it may be the only way to escape a situation that’s causing stress, anxiety, depression, or a combination thereof. 

Get legal advice from an employment lawyer

Sometimes employees decide to quit on impulse or get deliberately provoked by their employers to quit to avoid paying severance or termination pay.

When an employer’s actions essentially force a worker’s hand and cause them to quit, it is known as a “constructive dismissal,” however, that’s where employment lawyers, the courts, or provincial employment standards boards can step in and ideally make things right. 

People who suddenly become unemployed after impulsively walking off the job in frustration and anger can still sue their employers and seek recourse in the courts, but whether they win or lose depends on many factors.

These include evidence about their employers’ objective actions and the circumstances that led to them leaving, where a judge or labour adjudicator can find that someone was constructively dismissed by being forced to quit. 

Does your work environment violate your legal rights?

It is essential to know your legal rights in the work environment. Wrongful termination is severe and can lead to you getting compensation from your current employer. Below are some things you should think about:

• Speak to a lawyer about employment law and file a constructive discharge claim
• Make sure you didn’t sign a disclaimer with the HR department at your former employer, which reduces your rights
• Are you working in intolerable working conditions?
• Can you take legal action because of sexual harassment or wrongful dismissal?
• Was there a breach of contract, and are you entitled to unemployment benefits?
• Can you get severance pay under labour laws?

Constructive or unjust dismissal under the Canada Labour Code 

For federally regulated employees in Canada, the country’s Labour Code lays out an avenue for workers to complain of constructive dismissal from their jobs, sometimes called an “unjust dismissal.

Federally regulated employers include railways and airlines, banks, radio and television stations, government departments, and telecommunications firms.

These types of dismissals fall under the Canada Labour Code, a federal regime that covers constructive or unjust dismissals, including dismissal events that involve an employer’s “open unambiguous action.” 

As the federal government points out online, constructive dismissals aren’t “straightforward” and depend on specific sets of circumstances to determine. 

According to the federal government’s definition, constructive dismissals occur when employers don’t expressly or “directly” fire someone.

Constructive dismissals involve employers that have breached an employment contract “in a major respect” by foisting changes upon a worker unilaterally as a means of forcing someone to quit. 

Filing a constructive discharge claim

They’re also called “disguised dismissals” because they involve an employer’s ulterior motives in changing contractual terms to make an employee leave or “quit with cause.”

Employers may give a worker or a group of workers an ultimatum after changing the terms of their contract, telling them to accept the changes or quit.

To determine whether someone has been constructively dismissed as covered by the Canada Labour Code, however, it must be objectively evident from the employer’s actions rather than based on an “employee’s perception of the situation.” 

Under the code, a contractual breach must lead to a finding of constructive dismissal, a key distinguishing factor between it and what the federal government calls “an ordinary resignation.”

Depending on how serious the contractual breach by the employer and how apparently calculated or deliberate the action is, both are “important factors” for determining whether someone’s been constructively dismissed according to the code.  

Without the consent of the employee

An employer found to have constructively dismissed a worker must have been acting unilaterally, or in other words, “without the consent of the employee.” Therefore, a worker who agrees to a unilateral change to their employment contract would be out of luck should they make a complaint under the Canada Labour Code.

A worker facing a unilateral change to their contract must clearly refuse to accept any new conditions imposed, but they also have to leave their jobs within a “reasonable” amount of time after the employer tries to enact a change.

Suppose they don’t leave their jobs due to a unilateral change. In that case, the lack of action indicates the “acceptance of the new conditions of employment,” according to the Canadian government.  

Constructive dismissal from your current employer

However, in “rare and exceptional cases,” some employees who stayed on the job were still found to have been constructively dismissed.

An employee must keep the job, document their protestations of the altered working contract terms, and tell the employer that they may still get legal advice and take action if necessary. It’s a matter of explicitly showing that the employee doesn’t “condone” the changes to their employment contract. 

In cases of ambiguity where unjust or constructive dismissal is alleged, an inspector appointed under the code is supposed to help the two sides settle the dispute. If that doesn’t happen, the complaint goes before an adjudicator.

People who complain of constructive or unjust dismissal under the Canada Labour Code are still advised to get legal advice to explore all their options, including a lawsuit in a provincial supreme or superior court. 

Take Legal Action Against My Employer Post-Resignation

For regulated workers provincially, cases of constructive dismissal can end up in court in case of a lawsuit or employees can also seek recourse from provincial employment standards branches.

Even if someone walks off a job in anger and “quits,” it doesn’t mean they can’t claim they’ve been fired if they were essentially forced out of their job by an employer.

Employers often induce employees to quit by substantially altering their duties and responsibilities or working hours to avoid paying severance or termination pay.

A worker can complain to a provincial employment or labour standards branch and potentially be awarded termination pay even if they quit, as long as they show the employer’s actions were tacitly or implicitly calculated to cause a worker to leave their job.

Cases with provincial employment standards regulators often involve smaller amounts of money, perhaps a few thousand dollars owed to a constructively dismissed employee for severance or unpaid vacation pay. 

File a Lawsuit Against My Employer After Quitting

On the other hand, more significant cases involving long-term or higher-level employees often end up in court, where damages awards for constructive dismissal can be much higher, especially in cases where an employer is shown to have acted in bad faith. 

One constructive dismissal case that reached the Supreme Court of Canada was Farber v. Royal Trust Co. The plaintiff, David Farber, was a regional manager with hundreds of real estate agents under his supervision for the company in the mid-1980s when his position was eliminated in a “major restructuring.” 

While he wasn’t fired, the company had proposed an alternate management position at one of its “least profitable” offices in Quebec.

The new job didn’t guarantee a base salary but did come with a $40,000 “reorientation allowance” along with a higher rate of commission. The change amounted to a 50 percent pay cut in Farber’s estimation and the company wouldn’t alter the new offer, leading him to sue for constructive dismissal. 

Intolerable working conditions

While a lower court dismissed the case and an appellate court affirmed the decision, the Supreme Court of Canada allowed his appeal.

The Supreme Court panel found that the company had tried to make unilateral and “substantial changes” to Farber’s employment contract to which he didn’t agree. When that happens, the court found that employees are not considered to have resigned but instead constructively dismissed. 

The company wanted to change the “essential terms” of its deal with Farber, which meant it had stopped meeting its obligations under the original contract. In those situations, employees are free to treat the contract as breached and can leave the job while being “entitled to compensation in lieu of notice and, where appropriate, damages.” 

The Supreme Court ruling also states that it doesn’t need to be shown that the employer wanted to force the employee to leave by making changes or showing bad faith.

In Farber’s situation, the court found, it was “clear” that the company had made substantial changes to his employment contract, calling it a “significant demotion” where his duties and pay were “drastically cut, resulting in a considerable loss of status and prestige.”

Had Farber accepted the demotion, it would’ve been “extremely detrimental to [his] financial security.” 

Pursue Legal Recourse Against My Employer After Leaving

It would be best if you got legal advice about the following:

• Help to put together reasonable notice and a resignation letter
• What should a reasonable employee do in your situation?
• Were your human rights violated due to a hostile work environment?
• Understand how a former employee should act in good faith
• What kind of notice period should a reasonable person give?
• Should you hire a law firm to deal with your human resources department?

If you find yourself in a situation where your employer is trying to change your job title with lower pay, fewer hours, and fewer responsibilities, walking off the job might be your only option.

Accepting a lowball offer that shortchanges your skills, experience, and knowledge is hardly fair, and courts and employment standards regulators recognize that leaving a job, under those circumstances, is closer and more akin to being fired rather than quitting voluntarily.

Seeking legal advice from an experienced employment lawyer after leaving a job is a wise first step. In law, just because you “quit” doesn’t necessarily mean you weren’t wrongfully forced out for refusing to accept an unacceptable offer. 

Seek Legal Redress from My Employer Post-Resignation

As with any other lawsuit, if you’re planning to file a case against someone, you must have valid grounds. You cannot sue your employer just because you felt hurt or offended by their actions (or lack thereof). That’s not exactly how the law works.

You do have the right to sue your employer after quitting your job in Canada. But there are only several instances where you can do so. We’ll get to these reasons in a bit.

For now, it’s important to note that you must build a strong case against your employer—or anyone, for that matter—to win your case. You should have clear evidence to support your claim. Ask for help from an employment lawyer to further solidify your claim.

Employers Cannot Force Employees to Quit

Constructive dismissal is one of the biggest claims you can make when suing your employer. Simply put, constructive dismissal is when your employer “forces” you to quit. This can happen for several reasons.

Your employer cannot make the workplace toxic for you. They also cannot allow you to work in a contaminated environment. This means that they can’t put you through situations that any reasonable person couldn’t bear to keep working in. If they do, it could be grounds for constructive dismissal.

Another example is when your employer reduces your responsibilities and salary without proper notice. Demotion is more straightforward to prove when your pay is reduced, but it’s not always true. Even if your pay remains the same, reducing your responsibilities can also be a sign that your employer may be forcing you to quit.

Read more about the law:

• Am I allowed to take pictures of people without consent?
• Can I purchase a military vehicle in Canada? Like a tank?

Sue My Employer After I Quit – Fight workplace harassment

One of the (unfortunately) more common instances where you can sue your employer is if you experience workplace harassment. The law protects you from being discriminated against in your workplace for your race, gender, religion, and other protected classes.

It may not necessarily be your employer harassing you before you can file a case. It could be your colleagues doing the harassment. But if your employer doesn’t do anything about the issue after you’ve raised it with them, you can file a harassment lawsuit against them.

Withholding your pay or refusing to pay you is also another common ground for filing a constructive dismissal case against your employer. If your employer terminates you without proper notice, they must give you termination pay. If they fail to do so, you can file a case against them.

Grounds for dismissal

Exercising or asserting your rights can never be grounds for dismissal. In cases of constructive dismissal or wrongful termination, you may raise your concern to human resources or consult an employment lawyer to help you take the best course of action.

Doing so doesn’t give your employer the right to discriminate against you. They also cannot make the workplace inconducive for you to keep working in just because you filed a complaint against them.

Forcing you to quit is never a justifiable action in any circumstance. If there are any problems, your employer should communicate them to you. Similarly, if you have any issues, you should relay them to your employer immediately.

Litigate Against My Former Employer After Quitting

There are things to consider before filing a case against your employer, though. Even if your complaint falls against the said grounds, a lawsuit isn’t necessarily your first course of action.

Check your employment contract to see if there has really been a breach, especially if the issue is about your pay. Also, there might be provisions in your contract that address how you can file a complaint against your employer. If you’re planning to quit, your contract may also detail the proper way to do so (such as how much notice you’re required to give).

A resignation letter is the best way to give notice to your employer. Your intention of quitting should be clearly stated in the letter.

Your employer can either accept or reject it. If they accept it, they should be able to pay your outstanding wages until your last day of work. If they reject it (terminating your employment right away), they should be able to compensate you with termination pay.

Filing a lawsuit against your employer in Canada

Another thing to consider is the courses of action you can take when an issue arises. As a general rule of thumb, filing a lawsuit against your employer should be your last resort.

Try to solve conflicts internally first. Raise the concern with human resources. And if they fail to take proper action, that’s the only time you should consider suing your employer.

There are cases when filing a lawsuit against your employer isn’t worth it. If your company goes bankrupt (or is on its way to bankruptcy), it might not be able to compensate you for your losses even when you win the case.

You’ll end up losing more money for the lawsuit. Usually, the best thing to do when your employer stops paying you is to cut your losses and move on. Don’t wait it out as it might only bring you more harm in the future.

Additional Resources

If you need help with a case, contact an employment lawyer. They can assist you throughout the process and ensure you establish a strong claim against your employer.

Also, if you’re unsure whether you should keep trying to solve the conflict internally or take it to court, seek the help of a legal specialist. They can advise you on the best action to take in your case.

Claim Compensation from My Employer After Quitting

Quitting your job is your decision. You may or may not have a reason for quitting. And as long as you give your employer proper notice, everything should be fine.

But if your employer intentionally continues to make your work environment difficult to bear, you might have a strong case for constructive dismissal.

To recap, here are some indicators that your employer may be forcing you to quit:

• They make or allow your workplace to be toxic. You have a case if no one in their right mind can continue working in the atmosphere you’re currently working in.
• They reduce your responsibilities and your pay without proper notice.
• They harass you for your race, gender, or religion. Also, if they don’t do anything after you raise your concern, it could be grounds for filing a case against them.
• They withhold your pay or refuse to pay you. There aren’t many cases where these are valid.
• They retaliate when you file a complaint against them with human resources. It would be best if you didn’t suffer by exercising and asserting your rights as an employee.

We hope you found this article helpful. Can you “sue my employer after I quit?”