Imagine showing up at work one day and finding your role changed, your pay cut, or your desk mysteriously gone without warning or explanation. You haven’t been fired, but you no longer feel welcome. It’s as if your employer wants you gone but won’t say it outright. So, what do you do?
This situation, frustrating and confusing as it is, has a name under Ghanaian law: constructive dismissal. And if you’ve experienced it, or know someone who has, this article is for you.
So, what exactly is constructive dismissal?
Constructive dismissal happens when an employer’s actions make it practically impossible for the employee to stay. It could be one major change like slashing your salary in half without your agreement or a string of smaller actions that add up to an intolerable work environment.
The key thing is that you weren’t officially fired. You chose to leave because your employer’s behaviour made continuing working there unbearable. The law, however, sees through that silence; it treats your resignation as a dismissal by the employer.
Real-life examples? Here are a few common ones:
- Your employer suspends you without any valid reason.
- You’re transferred to a far-off location with no proper explanation.
- You keep raising complaints about harassment, and nothing is done.
- Your job duties are suddenly changed without your say-so.
- You’re excluded from work meetings or projects for no reason.
- Your salary or benefits are cut, and you didn’t agree to it.
- You’re demoted, or your title is removed unjustly.
Any of these could amount to constructive dismissal, especially if they happen without your consent and go against the terms of your contract.
What does Ghanaian law say about it?
The Labour Act, 2003 (Act 651), talks about this in Section 63. It says a worker has been unfairly terminated if they resign because of mistreatment or repeated incidents like sexual harassment.
A notable case that brings this to life is Dr. Kwami Owusu v. Fairfax Oil Services Ltd. Here’s what happened:
The company told employees that due to financial difficulties, no salaries would be paid for four months. If anyone didn’t like it, they could leave. Dr. Owusu wasn’t okay with that. He refused to work for free and didn’t sign a document the company offered to end his contract by “mutual agreement.” The court ruled in his favour. The employer’s decision to withhold salaries was a fundamental change to the employment terms. That was constructive dismissal.
If this happens to you, what can you do?
You’re not powerless. Ghanaian law offers protection.
First, try lodging a complaint with the National Labour Commission. If that doesn’t work, the next step may be court. To win, you’d have to prove two things: that your employer breached your contract in a way that hurt you, and that the breach was serious enough to leave you no reasonable option but to resign.
If the court agrees, you could get compensation or in some cases, your job back. The court looks at several factors when deciding how much compensation is fair, including how long it might take you to find new employment, the nature of your job, and how stable the employer is financially.
A few important takeaways for employees
Consent is everything. If you agree to changes in your contract like a demotion or pay cut, even silently, you may lose the right to claim constructive dismissal later. So speak up early. And always keep records of what’s happening, especially when things start to feel off.
And for employers?
If you’re an employer, know that changes at the workplace whether in pay, job role, or even office culture can trigger legal consequences if handled poorly. If something needs to change, involve the employee. Seek their agreement. Be transparent. And when in doubt, speak to a labour lawyer. It’s cheaper than a court case.
Final thoughts
Constructive dismissal may be “silent,” but it’s far from invisible in the eyes of the law. Whether you’re an employee wondering if you’ve been pushed too far, or an employer trying to avoid an honest mistake, understanding how this works is the first step toward fairer and safer workplace relationships.
Alhassan Aboagye on behalf of OSD and Partners. [email protected]
