A senior employee with 38 years of service was reassigned from Vice President of Operations to Purchasing Manager following an internal restructuring.
The employee refused the demotion and alleged constructive dismissal.
The court held that the unilateral reassignment involved a significant loss of status, authority, and prestige, amounting to a fundamental breach of the employment contract despite the preservation of salary.
Applying the Bardal factors, the court awarded 24 months’ reasonable notice and found the employee reasonably declined to mitigate by returning to a humiliating subordinate role.
Claims for moral damages were dismissed because the employer’s conduct was not in bad faith.
