When an employee's position becomes redundant or disappears and where his newly assigned position involves a substantial reduction in his salary, bonus, benefits, status, responsibilities, authority or any combination of these factors, he may have a right to sue for constructive dismissal. He cannot, however, remain on the premises, asserting that his contract has been breached by the company, and at the same time initiate a lawsuit for damages for constructive dismissal. If the employee alleges constructive dismissal, then he must leave the premises and either work out a settlement or commence proceedings.

The cases over the years have indicated that if there is a fundamental change in the employment relationship in the following areas, such a change may very well constitute constructive dismissal and the employee may be able to leave that employment and successfully sue for damages for wrongful dismissal:

1. reduction in salary;
2. change in benefits;
3. change in job content and level of responsibilities;
4. demotion;
5. location transfer;
6. forced resignation.