What is meant by "constructive discharge"?

Study for the Business Senior Exam. Use flashcards and multiple-choice questions with hints and explanations. Prepare confidently!

Constructive discharge refers to a situation where an employee feels compelled to resign due to intolerable working conditions created by the employer. This could include factors such as harassment, unsafe working environments, or significant changes in job responsibilities that adversely affect the employee's ability to perform their job. The key aspect of constructive discharge is that the employee did not formally get fired but instead felt they had no choice but to leave because their work environment was untenable.

In this context, the employee's resignation can be treated similarly to a termination, allowing for potential claims such as wrongful termination or discrimination, depending on the circumstances surrounding their departure. It highlights the employer's responsibility to maintain a workplace that enables employees to perform their duties without undue distress or hardship.

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