Constructive dismissal action dismissed; employer's proposed changes and 18-month working notice did not repudiate contract.
The plaintiff, a 68-year-old captive sales agent, brought an action for constructive dismissal after his employer proposed changes to his commission structure and requested he sign an updated employment agreement.
The plaintiff resigned, claiming a toxic work environment and a fundamental change to his employment terms, despite the employer offering 18 months of working notice on his existing terms.
The court dismissed the action, finding no constructive dismissal as the employer's conduct did not amount to a repudiation of the contract.
Furthermore, the court held that even if constructive dismissal had occurred, the plaintiff failed to mitigate his damages by refusing the reasonable opportunity to work out the notice period.
Matheson v. Erie Mutual, 2016 ONSC 704
