An employee alleged constructive dismissal after his employer proposed moving him from a managerial role supervising staff into a newly created “Special Projects” position without management responsibilities.
The court held that the proposed change constituted a substantial unilateral alteration of a fundamental term of the employment contract because it removed supervisory authority and diminished status and prestige.
Evidence showed the employer had already decided to implement the change despite representing it as a discussion, confirming the employee’s perception that he had no real choice.
The court further held the employee was not required to mitigate by remaining in the altered position because it would have created humiliation and loss of dignity.
Damages were awarded based on a 12‑month notice period, partial bonus entitlements, compensation for stock option losses, and limited pre‑judgment interest.
