The plaintiff, a mechanical engineer with 12 years of service, was laid off by the defendant.
He sued for constructive dismissal, seeking 8 weeks' salary in lieu of notice as per his employment contract, which referenced the Employment Standards Act, 2000 (ESA).
The defendant argued that the lay-off was temporary under the ESA and did not trigger termination pay, and that the plaintiff failed to resign within a reasonable period after the constructive dismissal as required by the ESA.
The court found that the employment contract, containing an "entire agreement" clause, displaced the ESA's provisions regarding temporary lay-offs and resignation requirements for constructive dismissal, except for the expressly incorporated notice period.
Judgment was granted in favour of the plaintiff for 8 weeks' salary in lieu of notice.