During the 1970s, there were cases involving relatively minor job changes being found to constitute constructive dismissals. Initially, the courts used a subjective test that considered how the workers felt and whether they were offended. During the past 15 to 20 years, this concept continued to be applied by the courts. Lately, however, the pendulum seems to be swinging in favour of employers. Courts are now applying a far more objective test and are less influenced by an employee's emotions or an employer's motives in making the change.
Courts do look at whether the employer acted in good faith and for legitimate business reasons.
Where the employer has done so, more latitude is given to them to alter aspects of an employee's position or working conditions. During the massive business restructuring of the eighties and nineties, the number of constructive dismissal cases increased exponentially. At very least, the change in workplace conditions must be imposed and fundamental. There was a time when courts required a finding that the employer intended to repudiate the employment contract by making the change. But lately, judges have said that if the employer is guilty of some conduct that can be said to represent a repudiation, then a constructive dismissal will be found.