Constructive termination
In a normal resignation, the employee voluntarily chooses to end the employment relationship. In a constructive termination situation, the employee may argue that they had no reasonable practical choice but to leave because of the employer’s conduct.
for legal advice. The legal position depends on the facts and applicable Sri Lankan law.
Common Situations
Depending on the facts of the case, constructive termination allegations may arise in situations such as:A substantial and unjustified reduction in salary or benefitsSerious changes to employment conditionsPersistent harassment or unreasonable treatmentUnjustified disciplinary pressureDemotion or significant changes in dutiesFailure to honour important contractual obligationsConduct that seriously undermines the employment relationshipHowever, not every difficult workplace situation or resignation amounts to constructive termination. The facts, available evidence, contractual terms, and applicable law must be carefully considered.
A Resignation Letter Does Not End the Legal Question
An employee submitting a resignation letter does not necessarily resolve every legal issue. If the employee later alleges that the resignation was obtained through coercion or resulted from serious employer conduct, the circumstances leading to the resignation may become relevant.
Therefore, HR should not consider only the final resignation letter. The events, communications, workplace conditions, and actions leading up to the resignation may also be important.
What Should HR Consider?
Before accepting or processing a disputed resignation, HR should consider:
- Was the resignation genuinely voluntary?
- Was the employee under unusual pressure?
- Were there recent changes to salary, duties, or working conditions?
- Did the employee raise complaints or grievances before resigning?
- Is there written evidence supporting either side?
- Were company policies and contractual obligations followed?
- Were HR procedures applied consistently and fairly?
Proper documentation of these matters can help establish what actually occurred and may reduce the risk of future disputes.
Sri Lankan Labour Law Context
In Sri Lanka, whether an employee’s departure may legally be treated as a termination, or whether the circumstances give rise to a legal remedy, depends on the facts of the particular case and the applicable employment law.
Therefore, employers and employees should avoid assuming that the label “resignation” alone determines the legal position. The circumstances surrounding the resignation may need to be examined.