Constructive Discharge Evaluation Factors

Summary

Constructive discharge in Indiana depends on whether a reasonable person would feel compelled to resign due to intolerable work conditions, employers intent to force resignation, and available alternatives. The 30-day consideration period for a severance package versus a performance plan may weaken the claim. Consulting an employment attorney is advisable.

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A long-time employee received a negative performance appraisal after some other employees and a customer had complained about him. The employee was presented with the choice of retiring with a severance package or being evaluated under a thirty-day performance improvement plan. The plan would include an assessment of his performance, leadership, support for peers and managers, teamwork, and customer satisfaction. He was also told that if his supervisor received even just one complaint about him during this thirty-day period, he would be terminated without severance pay. The employee was given thirty days to consider the offer. After mulling over the choice for twenty-five days, he took the severance package. Subsequently, the employee sued his former employer for wrongful termination. Was the employee constructively discharged? Why or why not?
Anthony, whether the employee was constructively discharged depends on whether a reasonable person in the employee's position would have felt compelled to resign. Indiana courts typically look at the following factors:
- Severity of the work conditions: Were they intolerable?
- Employer's intent: Did the employer intend to force the resignation?
- Employee's response: Did the employee have reasonable alternatives?
Given the choice between a severance package and a potentially harsh performance improvement plan, the employee may argue that the conditions were intolerable. However, the *-day consideration period might weaken the constructive discharge claim. Consulting with an employment attorney could provide more tailored advice.
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