ICANBusiness, Management and FinanceHuman Resource Management2024

In the context of Nigerian labour law, which of the following actions by an employer constitutes 'constructive dismissal'?

ATerminating an employee's appointment with three months' salary in lieu of notice
BUnilaterally and significantly reducing an employee's salary and benefits, forcing the employee to resignCORRECT
CDeclining to renew a fixed-term contract upon its natural expiration
DPlacing an employee on compulsory leave pending the outcome of a disciplinary investigation
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Constructive dismissal occurs when an employer fundamentally breaches the employment contract, making the working conditions so intolerable that the employee is compelled to resign. A unilateral and significant reduction in salary and benefits constitutes such a fundamental breach. Nigerian courts have upheld constructive dismissal claims in such circumstances, treating the employee's resignation as a dismissal and entitling them to remedies. Options A, C, and D are lawful employer actions when properly executed.
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