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1. Constructive termination

Constructive termination occurs when an employee choose to resign in response to the employer’s breach of employment contract. Only serious breach will amount to constructive termination. Under section 10 of the Employment Ordinance, employees have the right to terminate the employment contract on the following grounds:

  1. fear of danger or violence in the course of employment;
  2. poor treatment by the employer;
  3. having been employed for not less than 5 years and being medically certified as permanently unfit for the type of work required under the contract; or
  4. any other reasons permitted at common law.


If employees want to rely on the ground of constructive dismissal to end the employment relationship, they must do so promptly; otherwise, they will risk being regarded as having waived the employer’s breach by conduct.