In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), the Ontario Court of Appeal upheld a lower court decision awarding the respondent over $1.27 million in damages for constructive dismissal. Background The respondent had sold his family’s funeral business to the appellant employer and entered into a 10-year transitional consulting services agreement (TCSA) in 2012….
Tag: Constructive Dismissal
Advantage CPD: Coping with Change – Constructive Dismissal Considerations in the Time of COVID-19
COVID-19 has impacted many aspects of our lives, including employment. In this ever-changing world, employers must respond to the terms and conditions of their employees’ employment. The extent and consequences of change requires strategies which are critical to this assessment. This program aims to provide employers with tools to mitigate risk of a constructive dismissal claim.
Appellate Court: Employee Can’t Transform Employer’s Supportive Leniency (Allowing Flexibility in Her Start Time) into Contractual Obligation
The Ontario Divisional Court recently considered the issue of whether flexibility offered by an employer to an employee alters a fundamental term of the employee’s employment contract. In Peternel v. Custom Granite & Marble Ltd., the Divisional Court upheld a trial judge decision that the employee’s 8:30 a.m. start time at work was an existing…
$1.27 Million Damages Award a Reminder to Employers of Perils Associated with Fixed Term Contracts
In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), the Ontario Superior Court of Justice awarded a plaintiff over $1.27 million in damages for constructive dismissal after only one year had elapsed of a 10 year consulting services agreement (Agreement). In the absence of a cancellation provision, the defendant was obligated to pay the Agreement…
Benefits Canada Publishes an Article by Thomas Agnew on Constructive Dismissal and the Duty to Mitigate Damages
Hicks Morley’s Thomas Agnew authored an article in Benefits Canada titled “Constructive Dismissal and the Corresponding Duty to Mitigate Damages.” In a recent case, the Ontario Superior Court found an employee failed to mitigate damages when he refused a return-to-work offer from his employer, with whom he had a good working relationship. This case serves as an important…
Labour Notes® Newsletter Features Article by Siobhan O’Brien on Suspending Employees With and Without Pay
The September 17, 2018 issue of Labour Notes® newsletter features an article authored by Hicks Morley lawyer Siobhan O’Brien. In the article “Court of Appeal Outlines Key Principles On Suspending Employees With and Without Pay,” Siobhan discusses how the Ontario Court of Appeal provided valuable guidance regarding constructive dismissal, investigative suspensions of employees without pay and proper damages…
FTR Quarterly – Issue 10
In This Issue: 5 Key Things for Employers to Consider in Drafting Termination Clauses in Employment Contracts, What Is – and What Isn’t – Constructive Dismissal: An Update, FTRQ&A with John Kloosterman: Key Differences Between Canadian and U.S. Employment Law and much more!
Court of Appeal Outlines Key Principles On Suspending Employees With and Without Pay
In Filice v. Complex Services, the Ontario Court of Appeal provided valuable guidance regarding constructive dismissal, investigative suspensions of employees without pay and proper damages assessments. The plaintiff/respondent in appeal was employed by Complex Services (the defendant/appellant) as a Security Shift Supervisor at Casino Niagara and Fallsview Casino. All employees in the Casino’s Security Department…
Court Finds Emails Between Management and HR Department Not Privileged
A Master of the Ontario Superior Court of Justice recently rejected an employer’s assertion that emails between management and its Human Resources (HR) department were privileged and therefore not subject to disclosure in a constructive dismissal action. He stated that if “management seeks confidentiality in dealing with an employee, it should consult with counsel and…
Court Finds Employer Took Appropriate Steps to Change Terms of Employment – No Constructive Dismissal
In Lancia v. Park Dentistry, the Ontario Superior Court found that an employer who wished to change the terms of employment did not constructively dismiss a long-term employee because she was provided with 18 months’ working notice as well as a new contract with a signing bonus. The plaintiff worked as dental hygienist for the…