I have been employed 12 years on a base salary with commission and I recently received a letter that I will be removed from commission and placed on profit sharing. This reduction will amount to a 30% loss in annual earnings. There has been no profit sharing in the past five years with the office staff that are on this plan, so I am looking at a base salary only moving forward.
They have given notice of this change taking effect Jan 1, 2027.
1. Is this a constructive dismissal?
2. I have sent a letter that I am not in acceptance of this, but when does the law believe I am compliant in this change if I remain there? Not until after the change?
3. If I find other work by the end of the year before this change, can I still seek a constructive dismissal. My move means I lost senority and possible lower salary and my age is a factor right now (65)
4. If I contact them asking to extend this change longer than Jan 1, does that mean I'm accepting this change and negotiating now?
5. Taking 30% of a person's wage is clearly trying to force me out, but can they also demand I drive to the office 1.5 to 2 hours one way, when it was always remote home office for the past 12 years?

A substantial unilateral change to a fundamental term of an employment contract may constitute constructive dismissal. A reduction of approximately 30% in annual compensation would generally be considered a substantial change. However, constructive dismissal is typically only crystallized once the change is implemented, as the employer may reconsider or reverse its position prior to that time.

Based on the facts as outlined, if you secure alternative employment before the proposed changes take effect, a claim for constructive dismissal may not arise, as the departure could be characterized as a resignation. Conversely, if the changes are implemented and amount to constructive dismissal, any subsequent employment obtained during the applicable common law notice period will mitigate damages. In that scenario, you may be entitled to recover the differential between your previous compensation and your new earnings for the balance of the notice period.
If your employment has historically been fully remote, a unilateral requirement to attend in-office may also support a claim for constructive dismissal, depending on the terms of your contract and the surrounding circumstances.

Your situation is fact-specific and engages multiple legal considerations. If you would like more information about your situation, you can contact us at the number below to schedule a consultation to assess your position in detail.