The plaintiff, Michael Chalmers, brought a motion for summary judgment against his former employer, Airways Transit Service Limited, and its owner, Badder Capital Group Limited, for constructive dismissal.
Chalmers was laid off in March 2020 due to the COVID-19 pandemic and was never recalled, despite other management staff returning to work.
Airways Transit argued that Ontario Regulation 228/20 (Infectious Diseases Emergency Leave) precluded a common law constructive dismissal claim.
The court rejected this argument, affirming that the ESA does not displace common law remedies.
The court found that Chalmers was constructively dismissed as of June 4, 2020, when Airways Transit effectively phased him out due to his high salary.
The court awarded Chalmers 25 months' reasonable notice, including a "COVID bump," and $30,000 in punitive damages for the employer's high-handed and misleading conduct, while declining aggravated/moral damages.