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Long-term employee constructively dismissed via demotion awarded 28 months' notice and $25,000 in moral damages.
The plaintiff, a 58-year-old employee with 34 years of service, sued his employer for constructive dismissal after the employer unilaterally changed his job description, effectively demoting him from a sales and service technician to a project technician on the plant floor.
The court found that the unilateral change breached the employment contract and constituted constructive dismissal.
The court awarded the plaintiff 28 months' reasonable notice due to exceptional circumstances, including the employer's bad faith conduct.
The court also found that the plaintiff reasonably mitigated his damages and awarded $25,000 in aggravated/moral damages for the employer's bad faith in the manner of dismissal.
Without-cause dismissal failed under the Code’s unjust dismissal protections.
In an employment appeal, a non-unionized federally regulated employee challenged a without-cause dismissal under the unjust dismissal provisions of the Canada Labour Code.
The adjudicator held that severance in lieu could not displace the statutory requirement to assess whether the dismissal was unjust, and allowed the complaint.
The majority restored that decision, concluding the adjudicator's interpretation was reasonable and consistent with the statutory purpose and dominant adjudicative approach under ss. 240-246.
The court held the scheme protects eligible non-unionized employees from dismissal without cause and supports meaningful remedies, including reinstatement.
