Constructive Discharge

Meaning & Definition

A constructive discharge is defined as the process when he/she is forced to resign due to an employer’s creation of an unreasonable working environment. An employee may voluntarily choose to discharge himself/herself from employment; however, under such circumstance,s they will have constructively terminated themself under a reasonably similar condition to having been terminated directly by their employer based on the actions or inactions of that employer. 

Importance of Constructive Discharge

• Helps HR identify and prevent abusive or discriminatory workplace behaviour.
• Protects current employees against being discriminated against or forced into resigning indirectly by their employer.
• Ultimately reduces the chances of being legally liable for wrongful dismissal claims.
• Ensures that employees are treated fairly and that HR practices are ethical.
• Provides a method through which to strengthen the way HR handles complaints, appeals and oversees workplace policies.

Legal & Regulatory Considerations

Constructive termination of employment isn’t clearly stated in Indian labour laws. However, labour courts or law enforcement bodies may acknowledge it by using the Industrial Disputes Act of 1947, the law regarding grievance redressal, and the legal principle of unfair labour practices. Documentation of constructive discharge is important.