Employers generally understand that if an employee is terminated without just cause, potentially very large monetary obligations will be created in favour of the employee. Employers also generally understand that an employee who voluntarily resigns will not be entitled to any monetary compensation except what is already due regardless of the resignation (i.e. vacation pay, wages, etc.). For an employer who wishes to terminate an employee without just cause, there is a great temptation to avoid the obligation to make a severance payment by convincing an employee to "resign." The following are examples of actions an employer might take to convince an employee to resign:

Cut the employee's salary Reduce an employee's commission entitlement Eliminate an employee's bonus scheme	Demote an employee
Conduct a campaign of harassment toward the employee	Relocate the employee to a distant location
Take away the company car	Suspension, with or without pay

If an employee "resigns" due to any of the above, or something akin to the above, a court will find that the resignation is not voluntary (in the legal sense of the word). An employee faced with a situation involving a unilateral, fundamental alteration of the employment relationship (such as any of the items listed above), has the option of terminating the employment relationship and declaring himself or herself to have been constructively dismissed from employment.

Even if the employer did not intend to harm the employee, and had a legitimate business reason for the alteration, the employee will probably still have a right to object and pursue a claim for constructive dismissal.  However, if the employer intends to harm the employee,  that employee may also be entitled to additional compensation.

In a case of potential constructive dismissal, the employee must make a decision in a  reasonably short period of time.  If the employee waits too long, it will become too late to take exception and the employee will be considered to have waived his or her common law rights.  If you think you have been constructively terminated, your rights are the same as any other employee who has been terminated without just cause: What are the rights of an employee terminated without just cause?

To understand additional compensation, click here to read more.
To understand the rights of an employee terminated without just cause, click here to read more.