Differences and Severance Rights in Direct vs Constructive Dismissal
Direct dismissal is ordered by the employer while constructive dismissal is declared by the employee due to employer breach; both award identical full Art. 245 severance.
Suffering serious employer contract breaches?
Consult Lead Attorney Dr. Guillermo Conti before taking action to secure your full statutory severance:
Essential Legal Distinctions
- Constructive Dismissal is NOT Resignation: Self-dismissal preserves full Art. 245 severance; voluntary resignation waives it.
- Identical Severance Compensation: Both award seniority indemnity, notice pay in lieu, month integration, and bonus.
- Prior 48-Hour Demand Telegram Required: Employees must issue formal written demand before terminating the employment relationship.
1. Structural Comparison: Direct vs Constructive Dismissal
Contractual termination under Argentine labor law follows two main mechanisms:
- Direct Dismissal (Articles 242 & 245 LCT): Notified by the employer, either for cause or without cause (triggering full statutory severance).
- Constructive Dismissal / Self-Dismissal (Articles 242 & 246 LCT): Declared by the employee in response to severe employer misconduct (wage default, off-the-books employment, harassment, or unlawful job duty modifications).
2. Identical Severance Payout Rights
Under Article 246 LCT, a substantiated constructive dismissal awards the exact same financial compensation as direct unjustified termination: Article 245 seniority severance, notice pay in lieu, month integration, backpay, and accrued benefits.
Frequently Asked Questions
Do I get the same payout in constructive dismissal as being laid off?
Yes. Lawful constructive dismissal awards identical Article 245 seniority severance and notice pay.
Should I resign instead of claiming constructive dismissal?
Never resign if the employer is in breach: resignation forfeits all Article 245 severance and unemployment benefits.
What breaches authorize constructive dismissal?
Unpaid wages, off-the-books hiring, denied workplace access, severe harassment, or unilateral pay cuts.
Is SECLO mandatory for constructive dismissal claims?
Yes. Following demand telegrams, conciliation at SECLO must be initiated to negotiate settlement or proceed to court.