What is meant by 'constructive dismissal'?

Constructive dismissal refers to a situation where an employee resigns as a result of their employer's conduct, which has created an intolerable work environment or has significantly altered the terms of their employment without consent. This behavior may include drastic changes in job responsibilities, a hostile work environment, or substantial reductions in salary or benefits, leading the employee to feel they have no choice but to leave their job.

In this context, the correct understanding of constructive dismissal is that it is not simply a resignation but rather one prompted by actions from the employer that essentially force the employee's hand. This legal concept protects employees from being compelled to leave their jobs due to unfair treatment or breaches of their contractual relationship by the employer. It highlights the importance of maintaining a respectful and lawful workplace dynamic.