# What is Constructive Dismissal?

Constructive dismissal happens when employees resign due to employer breaches, like unsafe conditions or pay changes. SMEs should avoid practices that create risk.

Source: https://faqtic.co/glossary/constructive-dismissal

## Why it Matters for SMEs

- Prevents claims
- Protects reputation
- Supports fairness

## Example in Practice

Factorial records employee grievances and resolutions.

## Frequently Asked Questions

### Is constructive dismissal legal?

It can lead to claims.

### Causes?

Contract breaches, mistreatment.

### Prevention?

Clear communication, fair processes.

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Canonical HTML: https://faqtic.co/glossary/constructive-dismissal