Which term describes a situation where an employer creates working conditions that force a reasonable person to resign?

• A. Constructive discharge
• B. Disparate treatment
• C. Discouraged workers
• D. Diversity climate

Answer: (A)

A situation where an employer creates working conditions so intolerable that a reasonable person would feel forced to resign is called constructive discharge. In this scenario, the employee isn’t fired outright, but the employer’s actions—such as harassment, drastic demotion or pay cuts, unsafe or humiliating conditions, or unjust relocations—make continuing to work untenable. The resignation is effectively compelled by the employer’s conduct, which is why it’s treated as a form of termination even though the employee chooses to quit.

Disparate treatment would involve unequal treatment based on a protected characteristic, not the intolerable conditions themselves. Discouraged workers are people who have left the labor market or stopped seeking work due to poor prospects, not a pressured work environment. Diversity climate refers to the overall organizational culture regarding diversity and inclusion, unrelated to forcing resignations.