What is the difference between constructive dismissal and wrongful dismissal?

Constructive dismissal and wrongful dismissal are two legal terms that refer to the breach of an employment contract. Constructive dismissal occurs when an employer makes significant changes to the terms of a worker’s employment, such as cutting wages or changing work hours, without the worker’s consent. This type of dismissal is illegal in Indiana and could result in the employee filing a lawsuit against the employer. On the other hand, wrongful dismissal occurs when an employer terminates an employee’s employment without following the terms of the employment contract. This includes failing to provide a reason for termination, not providing notice of termination, or violating employment laws, such as anti-discrimination laws. In Indiana, wrongful dismissal is also illegal and the employee can sue for compensation. The main difference between constructive dismissal and wrongful dismissal is that constructive dismissal generally occurs without any breach of the employment contract. In other words, it occurs when an employer unilaterally changes the terms of the contract without the employee’s consent. On the other hand, wrongful dismissal occurs when the employer breaches the contract terms in some way, such as by not providing notice of termination or violating employment laws.

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