What is the Difference Between Resignation and Constructive Dismissal?
What is the difference between resignation and constructive dismissal? An employment relationship can come to an end in a few different ways. One way is when the employee resigns. There are different legal implications following when an employee resigns rather than when an employee is terminated or constructively dismissed. One way to delineate the difference is that resignation is embedded in the idea that the employee’s actions should be voluntary.
However, there are some circumstances where it is unclear where the employee has in fact resigned.
What Happened in the Poesl Case?
The Ontario Superior Court recently provided an application of the resignation analysis in Poesl v. Sharon Veterinary Clinic Professional Corporation, 2025 ONSC 62. In this case, the employee had worked at the employer’s veterinary clinic for approximately 20 years. An incident occurred where a cat under the clinic’s care escaped. The client and owner of the cat subsequently called the clinic, threatening the clinic staff on the phone. Considering the nature of the threats, the police were called, officers investigated, and the client was left with a warning.
The employee continued to work there for two weeks following this incident. However, she presented a medical note from her doctor a few weeks later stating that the employee could not return to work for medical reasons until “this issue is resolved.” The note did not specify what resolution was required, other than indicating “this issue” needed to be addressed.
The employee requested that the clinic terminate the client who made the threats. She insisted she would not return to work without this occurring. The employer refused to do so as the matter had already been dealt with by the police. When the employer refused, the employee stated that she would not be “coming back”. While the employee advised the clinic’s bookkeeper that she had been “fired”, the employer made it clear that the employee was not dismissed and provided time off if needed.
Why Did the Court Rule It Was a Resignation?
The court evaluated whether the employee was constructively dismissed based on the events that occurred. Ultimately it found that the employer’s refusal to terminate the client was reasonable given the employer had already taken sufficient action by notifying the police and the alarm company, directing staff to discontinue services and recording in the client’s file that no further treatment would be given. There was no professional rule that required the employer to terminate the client so the employee could return to work. Given the circumstance, the court determined that the employee’s insistence on sending the client a termination letter and her refusal to return to work amounted to resignation. As a result, the employee received no damages.
What Can Employees and Employers Learn From This Case?
The case highlights the fine line in what is the difference between resignation and constructive dismissal. When resignation is found, the employee is not entitled to damages for wrongful dismissal.
If you would like to get advice a potential resignation, please contact Whitten & Lublin online or by phone at (416) 640 2667.
Author – Sophie Teversham