Pressed to resign? Understanding constructive dismissal

The question is whether there was a real choice

Courts consider whether a reasonable person in the employee’s position would have felt compelled to leave. Relevant circumstances may include an unjustified demotion, a reduction in pay, serious discrimination, or conditions that make continued employment intolerable. A series of actions can matter as much as a single event.

Not every transfer, investigation, workplace disagreement or inconvenience amounts to dismissal. Employers can exercise legitimate management authority, subject to law and good faith. The employee’s duties, contractual arrangements, the employer’s stated reason and the actual effect of a change all need to be examined.

“Resign or face a case” requires careful examination

A threat of criminal charges used to force a resignation raises a serious issue. In Gabrillo v. Tri-J Marketing, Inc., decided on August 26, 2026, the Supreme Court considered persistent pressure to resign, threatened prosecution and the surrounding communications in finding constructive dismissal.

That does not mean every discussion of resignation during an investigation has the same result. In Lagamayo v. Cullinan Group, Inc., the Court examined evidence that the employee himself offered to resign after an investigation, and rejected his constructive-dismissal claim. The distinction turns on what actually happened, the basis for the employer’s action, and whether the employee’s decision was voluntary.

A signature on a resignation letter is relevant, but the surrounding circumstances still matter. Likewise, an allegation of coercion needs supporting evidence. Neither side should assume that a particular document settles the entire dispute.

Build a reliable record before memories fade

Make a dated account of events: who spoke, what was said, who was present, and what changed afterward. Preserve complete conversations rather than isolated screenshots. Keep original files and explain how the records were obtained. Do not access someone else’s account or remove confidential materials you are not entitled to possess.

The following records can help a lawyer compare the employee’s position before and after the disputed actions.

• Employment contract, job description, payslips and relevant policies.
• Transfer, suspension, disciplinary or return-to-work notices and responses.
• Resignation drafts, quitclaims, settlement proposals and related communications.
• Attendance records, dates of reporting attempts and witnesses to significant meetings.

For employees and employers

Employees should obtain advice before signing documents they do not understand or deciding how to respond to a work instruction. If a document has already been signed, bring it to the assessment together with the events leading up to it. Avoid assuming either that all rights have been lost or that the document can simply be ignored.

Employers should document legitimate business or disciplinary reasons, give the appropriate opportunity to respond, and avoid using threats or humiliating treatment to produce a resignation. A proposed settlement should be assessed for voluntariness, its terms and the applicable legal requirements.

The next step may involve clarification, conciliation or formal proceedings, depending on the claim. Deadlines and the proper forum should be checked promptly. QLO’s initial assessment can help identify the documents and employment issues that need closer review.