Constructive dismissal — Ontario Employment Law

T. v. Salytics Inc.

T. v. Salytics: Constructive Dismissal Appeal

The Court of Appeal for Ontario dismissed an appeal challenging a ruling that a temporary lay-off clause was not a termination clause under the Employment Standards Act, 2000. The court addressed whether the lay-off constituted constructive dismissal at common law and interpreted the employment agreement's substance over form, confirming that the clause incorporated ESA requirements.

F. v. Susur Lee Group Inc.

Constructive Dismissal Appeal: Condonation and Mitigation

This is an appeal to the Divisional Court from a trial judge's decision in a constructive dismissal case involving the Susur Lee Group Inc. The appeal addressed whether the employee's silence and delayed proceedings constituted condonation of the employer's repudiatory breach, whether ESA payments during a closure amounted to a return to work, and whether continued work could serve as mitigation. The Divisional Court found legal errors in the trial judge's analysis regarding condonation, the effect of ESA payments, and mitigation, allowing the appeal and ordering a new trial.

F. v. ProRich Seeds (2016) Inc.

Constructive Dismissal: Dependent Contractor Awarded 21 Months Notice

This case addresses whether a salesperson was an employee, independent contractor, or dependent contractor, ultimately finding dependent contractor status. The court held that the employer's unilateral withholding of a long-standing monthly advance constituted constructive dismissal, entitling the plaintiff to reasonable notice.

N. v. Township of Morley

Constructive Dismissal: Potter Test Applied

This wrongful dismissal case addressed whether the Township of Morley's actions constituted a constructive dismissal of the employee. The court found that the employer did not unilaterally change an essential term of the contract and that a reasonable employee would have persevered, thus constructive dismissal was not established. Consequently, the claim for damages was dismissed, although an alternative assessment of notice was noted as one year reduced to six months had liability been found.

F. v. Sigma Lithium Corporation

Constructive Dismissal: Damages for Unilateral Modifications

This case addresses whether unilateral modifications to duties and marginalization amounted to constructive dismissal, applying the Bardol factors to determine reasonable notice. The court found constructive dismissal established and awarded damages in lieu of notice, along with aggravated and punitive damages due to the employer's egregious conduct.

S. v. Rotalec Canada Inc.

Employment: Leave to Amend Pleadings for Corporate Veil

This is a procedural ruling on a motion to amend pleadings in an employment law action involving constructive dismissal and unpaid commissions. The court granted leave to add corporate veil allegations against a directing mind, finding that a reasonable cause of action was disclosed and leaving limitations defences to be pleaded.

S. v. University Health Network

This is an interlocutory procedural decision regarding a motion to amend pleadings in an employment dispute involving constructive dismissal and Human Rights Code allegations. The court applied the mandatory test under r. 26.01 of the Rules of Civil Procedure, permitting amendments that particularized the constructive dismissal claim while refusing those parts deemed statute-barred under the Limitations Act, 2002. The court allowed additional heads of damages (aggravated and punitive) as they were based on the same facts rather than new causes of action.

N.M. v. C.T.

Constructive Dismissal: Part-Time Server Awarded 3 Months Notice

This is a merits decision addressing a claim of constructive dismissal involving a part-time server. The court found the employer's conduct made continued employment untenable and awarded three months' notice plus prejudgment interest.

M. v. 1788795 Ontario Inc.

Constructive Dismissal Appeal: Toxic Work Environment & Human Rights

The Divisional Court dismissed an appeal from a Small Claims Court decision finding that the employer constructively dismissed the employee through a toxic work environment, including inappropriate conduct during medical leave. The court upheld the finding that the employee did not resign or abandon employment, and affirmed the damages awarded for injury to dignity under the Ontario Human Rights Code, applying the standard of review for factual findings.

K. v. Kingston Area Taxi Licensing Commission

Constructive Dismissal: 24 Months Notice & Aggravated Damages

This is a merits decision in a wrongful dismissal case where the plaintiff alleged constructive dismissal due to a hostile work environment, including micromanagement, harassment, and bad faith contract negotiations. The court found that the defendant's conduct fundamentally breached the employment relationship, establishing constructive dismissal and awarding damages for the manner of dismissal.

M. v. King Ursa Inc.

Constructive Dismissal: 12 Months Notice Awarded

This case addresses whether a demotion and significant salary reduction upon an employee's return from maternity leave constituted constructive dismissal. The court applied the principles from Farber v. Royal Trust Co. to find that the unilateral changes to the employee's title and pay independently amounted to constructive dismissal. The court awarded damages based on twelve months' reasonable notice, applying the contextual approach from Bardal v. Globe & Mail Ltd., and also awarded moral damages for the employer's insensitive conduct.

T. v. Salytics Inc.

T. v. Salytics: Constructive Dismissal & Lay-Off Validity

This case involves a dispute over whether a temporary lay-off constituted constructive dismissal and whether the lay-off provision in the employment contract was valid under the Employment Standards Act, 2000. The court analyzed whether the provision qualified as a termination provision and determined that the substance of the provision governed its characterization. The application was dismissed, finding the lay-off provision valid and the temporary lay-off did not amount to constructive dismissal.

R.T. v. Grenville Management Inc.

Constructive Dismissal: 16 Months Notice Awarded

This case addresses whether a unilateral layoff constituted constructive dismissal at common law and whether Ontario Regulation 2020/228 precluded such claims during the pandemic. The court held that the regulation did not displace common law rights and awarded 16 months' notice, considering the pandemic's impact on the job market. The employer's mitigation defence was rejected due to the employee's health issues and belief in the layoff's validity, but punitive damages were denied.

F. v Susur Lee Group

Constructive Dismissal: Temporary Lay-off and Condonation

This case addresses whether a unilateral temporary lay-off without a contractual term amounted to constructive dismissal and whether the employee condoned the lay-off by returning to work. The court applied the Potter and Pham framework, finding that the employee's recall within 12 weeks and acceptance of pay constituted condonation rather than mitigation, leading to the dismissal of the constructive dismissal claim.

2252230 v. R.

Constructive Dismissal: 15-Year Bookkeeper Awarded 18 Months Notice

This is a merits decision in a wrongful dismissal case involving a bookkeeper employed for over 15 years who was subjected to unilateral reductions in hours and compensation. The court found these changes constituted constructive dismissal and applied the Bardal factors to determine a reasonable notice period of 18 months. The employer's claim of financial hardship was rejected due to lack of evidence, and damages were calculated based on salary, car allowance, and benefits.

L. v. St. Laurent Automotive Group Inc.

Constructive Dismissal: Temporary Layoff & 7 Months Notice

This case addresses whether a temporary layoff without contractual authorization constitutes constructive dismissal, resulting in a finding that the employer breached essential terms of the employment contract. The court awarded seven months' notice to a mechanic, considering factors such as inducement and economic uncertainty, while rejecting claims for bad faith damages due to a lack of malicious conduct.

A. v. Costco Wholesale Canada Ltd. et al

A. v. Costco: Trial Adjournment & WSIA Right to Sue

This is an interlocutory proceeding concerning a motion for the adjournment of a trial in an employment dispute involving constructive dismissal and harassment. The defendants sought an indefinite adjournment to await a Workplace Safety and Insurance Appeals Tribunal (WSIAT) decision on a right to sue application, while the plaintiff opposed the delay due to prejudice. The court had to determine whether the trial should proceed despite the pending statutory determination.

B. v. Weirfoulds LLP

Constructive Dismissal Pleadings Struck Out: B. v. Weirfoulds

This is an appeal to the Court of Appeal from a motion judge's decision striking out an employee's amended statement of claim against several individual defendants. The employee sued his former law firm employer and individual defendants for constructive dismissal, defamation, conspiracy, and other claims. The motion judge struck the claims against the individuals for failing to disclose viable causes of action or lacking material facts, and denied leave to amend the claims against them. The Court of Appeal dismissed the appeal, agreeing that the pleadings lacked necessary material facts and confirming that no standalone causes of action exist for breaches of professional rules or human rights legislation.

B. v. Callidus Capital Corporation

Appeal Dismissed: $1.8M Unpaid Benefits Award Upheld

An executive sued for constructive dismissal and unpaid benefits. A motion judge found he voluntarily retired rather than being constructively dismissed, but awarded him approximately $1.8 million for vacation pay, deferred bonuses, and stock options on summary judgment. The Court of Appeal dismissed the employer's appeal, rejecting its just cause defence and upholding the motion judge's decision.

P. v. Sharon Veterinary Clinic Professional Corporation

Constructive Dismissal: Veterinarian Resignation Claim

This case involved a veterinarian with 20 years of service who claimed constructive dismissal after his employer refused to send a termination letter to a client. The court determined that the employee's refusal to return to work constituted a resignation rather than a constructive dismissal, leading to the dismissal of his wrongful dismissal and Human Rights Code claims.