A constructive dismissal may occur when an employee has resigned, but the resignation has been forced or initiated by some unjustifiable action of the employer. This will typically occur under the following circumstances (we refer to Auckland Shop Employees Union v Woolworths (NZ) Ltd [1985] 2 NZLR 372):
- Where an employer gives an employee the choice of either resigning or being dismissed; or
- Where the employer has followed a course of conduct with the deliberate and dominant purpose of coercing an employee to resign; or
- Where the employer is in breach of a term or condition of employment to such an extent that the employee is justified in treating the employer’s conduct as terminating the employment.
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