News & Analysis as of

Employer Liability Issues Constructive Discharge Canada

Littler

Ontario, Canada Court Confirms a Clearly Drafted Temporary Layoff Clause Can Protect Employers From Constructive Dismissal Claims

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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice considered whether a temporary layoff provision in an employment contract constituted a termination provision, and was therefore subject to the...more

Stikeman Elliott LLP

The reasonable person test—When constructive dismissal becomes employee’s failure to minimize damage

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On February 1, 2024, the Superior Court of Quebec decided that a senior executive with 35 years of service who had been constructively dismissed was not entitled to severance pay because he had declined the new position the...more

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Alberta, Canada Court Holds Placing Employee on Unpaid Leave for Failure to Comply with Mandatory COVID-19 Vaccination Policy is...

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In Van Hee v Glenmore Inn Holdings Ltd., 2023 ABCJ 244 (Glenmore), the Alberta Court of Justice found that an employer’s mandatory vaccination policy was a reasonable, justified and lawful response to the extraordinary...more

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Ontario, Canada Court of Appeal Addresses How Employers Can Preserve Right to Unilaterally Lay Off Employees Without Being Found...

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In Pham v. Qualified Metal Fabricators Ltd., 2023 ONCA 255, the Ontario Court of Appeal (OCA) found that unless an employee’s employment contract provides otherwise via an express or implied term, an employer’s unilateral lay...more

Faegre Drinker Biddle & Reath LLP

Ontario Again Extends Temporary Relief from the ESA’s Termination and Severance Provisions

As we previously highlighted, on May 29, 2020, the Province of Ontario enacted Ontario Regulation 228/20, Infectious Disease Emergency Leave (IDEL Regulation), under the Employment Standards Act, 2000 (ESA). The IDEL...more

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Ontario, Canada Court Decides Employees Laid Off During COVID-19 May Not Claim Constructive Dismissal at Common Law

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Just six weeks after holding in Coutinho v. Ocular Health Centre Ltd. that Ontario Regulation 228/20 (IDEL Regulation) under the Employment Standards Act, 2000 (ESA) did not remove an employee’s common law right to claim...more

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Ontario, Canada Court Decides Employee Laid Off During COVID-19 May Claim Constructive Dismissal at Common Law

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Last May, the government of Ontario filed Ontario Regulation 228/20 (IDEL Regulation) under the Employment Standards Act, 2000 (ESA).  The Regulation provides that an employee in a non-unionized workplace who, any time during...more

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Ontario, Canada: Court of Appeal Upholds $1.27 Million Damage Award for Constructive Dismissal

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In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), 2020 ONCA 816 (McGuinty), the Court of Appeal for Ontario upheld the Ontario Superior Court’s decision to award an employee one of the highest damage awards ever...more

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Ontario, Canada: Sexually Harassed Employee Wins the Battle but Loses the War When she is Awarded Damages But is Ordered to Pay...

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A recent decision of the Court of Appeal of Ontario, Colistro v. Tbaytel, 2019 ONCA 197, puts employers in Ontario on notice that if they re-hire an employee who has a history of victimizing a current employee by sexual...more

Blake, Cassels & Graydon LLP

SCC Revisits Constructive Dismissal in Potter v. New Brunswick Legal Aid Services Commission

On March 6, 2015, the Supreme Court of Canada (SCC) revisited and clarified the common law test for constructive dismissal in Potter v. New Brunswick Legal Aid Services Commission. ...more

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