An employee at a financial services firm is subjected to a unilateral, significant reduction in their salary and a demotion without cause. The employee resigns in response. What type of dismissal has occurred?

Constructive dismissal happens when an employee terminates the contract (resigns) with or without notice, in circumstances where they are entitled to do so without notice by reason of the employer's conduct. A significant, unilateral pay cut is a fundamental breach of contract.