Final answer:
Constructive dismissal occurs when an employee quits due to intolerable pressure from management, which differs from layoffs or retrenchment, the latter being employer-initiated for business reasons.
Step-by-step explanation:
The situation where an employee resigns due to extreme pressure by management, rendering continued employment intolerable, is known as constructive dismissal. In contrast to layoffs or retrenchment, which are initiated by the employer due to business reasons, constructive dismissal occurs when the employee feels they have no choice but to quit because of the employer's actions. This can be related to a hostile work environment, harassment, or significant changes in job duties or compensation. Employers must be cautious to avoid such circumstances as they can lead to legal repercussions.