ACCA Corporate and Business Law (F4) Certification Practice Exam

Constructive dismissal occurs when an employee resigns from their position due to the employer's conduct, which has made the working environment intolerable or has breached the terms of the employment contract. This could involve actions such as significant changes to job duties, harassment, or a failure to address significant issues that affect the employee's ability to perform their job.

In this context, if an employee feels compelled to leave because the employer's behavior creates hostile or unreasonable conditions, they may claim constructive dismissal. This concept is critical in employment law because it recognizes situations where an employee cannot reasonably be expected to continue working due to the actions or inactions of their employer.

The other scenarios described do not fit the definition of constructive dismissal. For instance, being fired without notice involves direct dismissal, while temporary layoffs or failure to promote do not inherently create a situation that compels an employee to resign due to an intolerable work scenario. Therefore, the correct interpretation of constructive dismissal aligns with the scenario presented in the response involving an employee's resignation triggered by the employer's behavior.