Ontario Severance

C. v. FRI Corp.

2005 CanLII 20815 (ON SC)Ontario Superior Court of JusticeDecided Wrongful dismissal

Constructive Dismissal: Senior Employee Awarded 9 Months Notice and Wallace Damages

Summary

A wrongful dismissal case involving a senior employee with 14 years of service who was suspended without pay and subjected to punitive measures, including demotion and removal of flex hours, which the court found constituted constructive dismissal. The employer argued just cause for dismissal based on alleged misconduct, but the court found the misconduct insufficient and awarded nine months’ notice plus three months’ Wallace damages for bad faith.

Outcome

Constructive dismissal established; nine months’ notice and three months’ Wallace damages awarded.

Award

Nine months’ notice and three months’ Wallace damages awarded for employer’s bad faith conduct.

Key Factors

  • constructive dismissal
  • suspension without pay
  • just cause
  • mitigation of damages
  • Wallace damages

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More Ontario employment decisions from 2005

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.