A constructive dismissal occurs where the employer does not dismiss the employee, but the employee resigns and can show that they were entitled to do so by virtue of the employer's repudiatory breach or fundamental breach of contract. A constructive dismissal may be an unfair dismissal and a wrongful dismissal as the employer has breached the employee's contract of employment.

For more information on the law and practice in this area, see Practice note, Constructive dismissal.