Common use of Cautionary Note Clause in Contracts

Cautionary Note. There is a third type of dismissal or employment termination situation that is called “constructive dismissal.” Situations leading to constructive dismissals are typically caused when the Employer initiates one of the following: Forces the employee to resign, demotes the employee, imposes a downward change in reporting function, forces the employee to transfer to another work location, and unilaterally imposes substantive changes in the employee’s duties and responsibilities. Serious misconduct of the Employer toward the employee is also a situation that falls within the scope of constructive dismissal. In situations of constructive dismissal, the affected employee may have a claim for “wrongful dismissal” damages. The conference is advised to move cautiously when considering substantial reorganizations or major alterations to employee job descriptions and work environments.