In employment law, constructive dismissal occurs when an employee resigns due to the employer creating a hostile work environment. This often serves as a tactic for employers to avoid payment of statutory or contractual severance pay and benefits. In essence, although the employee resigns, the resignation is not truly voluntary but rather a response to intolerable working conditions imposed by the employer. These conditions can include unreasonable work demands, harassment, or significant changes to the employment terms without the employee’s consent.