Not paying into a terminated employee's pension or benefits when required can lead to which remedy?

• A. Constructive dismissal
• B. No remedy
• C. Wrongful dismissal
• D. Unlawful termination

Answer: (C)

When an employer fails to continue pension or other benefits that are due after termination, it breaches the employment contract. That breach affects the value of the dismissal for the employee, so the proper remedy is damages for wrongful dismissal. This means the employee can be compensated for the lost benefits and other contractual entitlements that should have been paid, bringing them closer to the position they would have been in if the contract had been fully performed, including appropriate notice or severance as applicable.

Constructive dismissal would involve the employer’s conduct effectively terminating the contract by changing fundamental terms, which isn’t the focus here. No remedy isn’t correct because there is a breach with a compensable consequence. Unlawful termination isn’t the precise legal label used for this scenario in this context.