M. v. Service Maintenance Inc.
Constructive Dismissal: 9-Year Employee Awarded 14 Months Notice
Summary
A constructive dismissal case where the plaintiff was demoted from general manager to lead toolmaker with reduced responsibilities and compensation. The court found that the demotion significantly altered the terms of employment, constituting constructive dismissal. The plaintiff was awarded 14 months' notice based on length of service, age, and employment prospects. The case also addressed the reasonableness of rejecting alternative employment and the inclusion of overtime in damages.
Outcome
Constructive dismissal found; 14 months' notice awarded; damages awarded with 50% discount factor applied for breach of fiduciary duty.
Award
14 months' notice awarded; damages for breach of fiduciary duty awarded with 50% discount factor applied.
Key Factors
- constructive dismissal
- demotion
- reasonable notice
- mitigation of damages
- breach of fiduciary duty
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More Ontario employment decisions from the 1990s
This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.