The appellant employer appealed a trial judgment finding that the respondent employee was constructively dismissed and awarding her damages.
The respondent, a director, had refused to accept a corporate restructuring that required her to report to a newly appointed assistant vice-president rather than the senior vice-president.
The Divisional Court allowed the appeal, holding that the trial judge erred in construing the altered reporting obligation as a transfer of responsibility.
Applying an objective test, the court found that the structural change did not constitute a fundamental breach of the employment contract, and therefore, there was no constructive dismissal.