Constructive discharge

dmartenson · September 2003

Scenario - employee works very hard for small company to create better product and improve personal lifestyle. Employee works 12-14-16-18 hours a day sometimes (long story - hours not required by employer, but employee feels are necessary to help keep company afloat). New management comes on board, changes the culture of the company. Company starts going downhill fast. However, employee continues to work hard (this is an exemplary employee). After 12 months of much discussion and soul searching, employee decides to voluntarily term employment. Employer is on verge of bankruptcy (REALLY BAD management).

Question - would this ever be considered constructive discharge in regards to unemployment? Or does the voluntary thing stand?

Thanks in advance for your comments/opinions.

Pork · September 2003

dmartensen: "voluntary quit" stands in most states; you should have stated with the very small company until bad management completely destroyed the company through bad management practices and they RIF everyone but the flag bearer that being you, you could draw unemployment then and you could draw U/E when the company downsized and your position was eliminated. Until then you are stuck to make your own decision to stay on-board with the hope that someone will come along and save the "sinking ship". Sorry, don't think I am to wrong on the good employees good faith effort, but then had to jump ashore or drown!

PORK

Down_the_Middle · September 2003

I can't imagine the scenario you cite as grounds for constructive discharge.... The impact would have to apply to all individuals and I don't see any valid argument for remaining with the sinking ship and then claiming intentional destruction of the work environment with the intention of driving this individual away. A creative legal argument, perhaps, but ...........not very likely in my opinion.

Human Resources Manager · September 2003

I doubt that the scenario you described would qualify as constructive discharge. A constructive discharge results when the company through action or inaction (ignoring harassment, etc.) creates a workplace that is so hostile and intolerable for the employee that his/her only logical recourse is to quit. I don't think that changing the culture or bad fiscal management would qualify.

mwild31 · September 2003

Been there, done that, it's a voluntary quit. Best wishes to the exemplary employee.

Crout · September 2003

You answered your own question when you stated: "employee voluntarily decides to term employment." Obviously not a constructive discharge.

dmartenson · September 2003

It is my understanding that a voluntary term CAN actually be considered a constructive discharge if the reason for the term is that the working environment is such that the employee can no longer work there because it has become a "hostile" environment, and that the employer is not addressing the problem.

I know my scenario does not appear to be "hostile" in the small sense of the word, but this particular employee could no longer work there in good faith knowing the company was self-destructing - and was making himself ill trying to solve all the problems.

Thank you all for your comments/opinions.

gillian2 · September 2003

It is not constructive discharge - you need some element of the employer knowingly creating the environment so that the employee would quit.

Don D · September 2003

Gillian's summation is, as usual, short and reliable. Just like Ray's....ah, memory. This is not constructive discharge. An environment can be hell on earth and not be a hostile environment. If the manager was knowingly creating a situation for this particular employee where he was ridiculed or work was held away from him, or everybody but him was recognized and rewarded or he was being singled out by some sort of overt or even covert mistreatment on a continual basis and the manager was knowingly and intentionally trying to make his life at work hell and drive him away or into insanity, that would probably be constructive discharge, if he quit. Constructive discharge is a term used by the EEOC and the legal profession, not the unemployment insurance system or personnel managers, unless they are pretending to be practicing attorneys. Good riddance and good luck to the gone guy. He quit.

Constructive discharge

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