Can I Keep My Severance If I Quit?

Can I Keep My Severance If I Quit? If you value your severance package, wait until you get fired. If you can’t bare your employer, do quit but make sure you qualify for constructive dismissal before you do. Your employment law entitlement to termination pay and severance pay for long term service ends when you quit.

Honestly, you shouldn’t quit any job unless you don’t want any severance package, you don’t value your contributions to the company or the time and effort you spent building up your career in the company. But there’s an exception in the case of constructive dismissal.

Severance vs. Constructive Dismissal

Employment Law Constructive Dismissal happens when an employer, by words or conduct, unilaterally makes a fundamental change to a material term or condition of an employment contract. Constructive dismissal may occur through substantial, unilateral changes to essential employment terms such as compensation (salary, benefits, or bonus), job responsibilities, reporting functions within the company hierarchy, working conditions, hours of work, the term of employment, or the employee’s location of work.

For instance if you work a nine to five job, and your employer suddenly changed it to a 7 pm to 11 am shift, or if you are a manager at the company and your employer suddenly demoted you to be an office clerk, you might have a case of constructive dismissal. Other forms of constructive dismissal could be more subtle in nature. For example, your employer could make it extremely difficult for you to do your job properly by terminating all your office assistants and suddenly require you to take on their job responsibilities as well, you might have a case of constructive dismissal.

Click here to learn more about constructive dismissal.

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