How Should an Employer Respond to an Employee Claim to Constructive Discharge?

Constructive discharge is more than just calling the employee's bluff when she continually threatens to quit her job. The phrase “constructive discharge” usually accompanies a former employee’s formal complaint about a hostile work environment. The widely accepted definition of the phrase means the employee believes the work environment has become intolerable to the point that the employee quits under duress. In some cases, however, the phrase is used by a former employee who announces she wants to quit her job and the employer takes her up on the offer.

  1. Employee Notice

    • Employers generally don’t receive official or immediate notification of the employee’s claim for constructive discharge. However, if an employee states something like “I quit because I just can’t bear to work here any longer” or “You’ve made it impossible for me to work here,” the employer can reasonably expect that the employee will file a formal complaint. On the other hand, an employee’s decision to quit simply could be based on the employment at-will doctrine, which means the employee has the right to end the working relationship at any time, with or without reason or advance notice.

    Employer Notice

    • When the employee proclaims she can no longer work for the company and doesn’t specifically state why, the employer has no reason to believe that she intends to file a formal complaint involving constructive discharge. Official notice of a claim for constructive discharge usually comes from the U.S. Equal Employment Opportunity Commission or the state’s fair employment practices agency after the employee complains to one of the agencies to seek redress for unfair employment practices.

    Employer Response

    • The first thing an employer should do is acknowledge the formal charge and contact the company’s legal counsel. A former employee’s claim that contains a constructive discharge element usually won’t be the sole basis for the complaint; therefore, it’s essential that the employer understands the employee’s claim in its totality. If this is the first time an employer hears about constructive discharge, it’s likely the employee didn’t follow the company’s processes for internal resolution of workplace issues. Acknowledging the complaint simply is letting the federal or state agency know the name and title of the person responsible for handling employee complaints – it’s not the employer’s admission of any unfair employment practices.

    Employer Action

    • The employer should review the employee’s complaint, the personnel file and any investigative files the company has regarding an in-house complaint the employee filed. Absent any prior complaints, construct a position statement that chronicles the employee’s work history, leading up to the date on which the employee quit. Describe the manner in which the employee resigned from his job, and include a copy of the employee’s resignation notice, as well as any statements the employee made during his exit interview. In addition, summarize your company’s written policy on handling employment complaints and state whether the employee used the in-house procedures for employee concerns. If your file review indicates the employee did file a previous complaint and that the company resolved the matter to the employee’s satisfaction, provide a summary of your investigation to the agency handling the former employee’s complaint.

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