MT2 - Constructive Dismissal/Employee Resignation Flashcards
(53 cards)
What are the two main types of Constructive Dismissal?
Constructive dismissal occurs when an employer’s behavior makes continued employment intolerable or when the employer commits a substantial breach of the contract.
What test determines if an employee can claim Constructive Dismissal?
The test examines whether the employer breached an explicit or implied contract term, whether a reasonable employee would consider the breach substantial, and whether the employee treated the contract as terminated by quitting without condoning the breach.
What employment changes can lead to a claim of Constructive Dismissal?
Unilateral pay cuts, unreasonable job relocation, significant job duty changes such as a demotion, unpaid suspensions or layoffs without contractual basis, and workplace harassment.
What options does an employee have after experiencing Constructive Dismissal?
An employee can condone the changes by continuing to work, treat the contract as terminated by quitting and suing, or protest the changes by formally objecting and attempting to enforce the original contract terms.
When does an unpaid temporary layoff not amount to Constructive Dismissal?
An unpaid temporary layoff does not amount to constructive dismissal if the employment contract explicitly allows it, if it is permitted under a collective bargaining agreement, or if it is temporary and follows statutory guidelines.
What determines whether a resignation is voluntary or forced?
A resignation must be clear and unequivocal. If an employee is forced to resign under pressure, such as being given the choice to quit or be fired, it is not considered a voluntary resignation.
What are the key factors in an employee’s duty to mitigate damages after wrongful dismissal?
The employee must seek comparable employment but is not required to accept a demotion, relocate unreasonably, or return to a toxic work environment.
What are the three types of damages an employee can claim for wrongful dismissal?
Compensatory damages cover lost wages and benefits during the notice period. Aggravated damages compensate for mental distress caused by bad-faith termination. Punitive damages are meant to punish the employer for egregious misconduct.
What is the minimum statutory notice period for termination in Saskatchewan for an employee with three to five years of service?
Four weeks.
What is the minimum notice period for a mass termination of seventy-five employees in Saskatchewan?
Eight weeks.
In which jurisdictions are non-unionized employees protected from dismissal without just cause?
Federal, Nova Scotia, and Quebec.
What did the Supreme Court decide in Wallace v. United Grain Growers regarding bad-faith dismissals?
The Court ruled that employers who dismiss employees in bad faith, such as through misleading or humiliating tactics, must extend the reasonable notice period. This created what became known as ‘Wallace damages.’
What key principle from Wallace v. United Grain Growers was later overturned?
The automatic extension of the reasonable notice period for bad-faith terminations was overturned in Honda v. Keays (2008), which required employees to prove actual harm instead of automatically receiving extended notice.
How did Honda v. Keays change the legal approach to bad-faith terminations?
The Supreme Court ruled that employees must provide actual evidence of mental distress caused by the employer’s bad-faith termination to receive aggravated damages. This replaced the Wallace approach of automatically extending notice periods.
What must an employee prove to receive aggravated damages under Honda v. Keays?
The employee must provide medical or other credible evidence that the employer’s termination directly caused mental distress or harm.
What are the Bardal factors, and why are they important in wrongful dismissal cases?
The Bardal factors determine the appropriate length of reasonable notice and include considerations such as the employee’s age, length of service, nature of their position, and availability of similar employment.
How do the Bardal factors impact notice periods?
Older employees, long-term employees, and those in specialized positions receive longer notice periods since finding comparable employment is more difficult.
What precedent did Farber v. Royal Trust establish regarding constructive dismissal?
The Supreme Court ruled that a fundamental unilateral change to an employee’s contract by the employer, such as a significant demotion or salary cut, can constitute constructive dismissal.
What test did Farber v. Royal Trust establish for constructive dismissal?
A reasonable employee test: Would a reasonable person in the employee’s position consider the change as forcing them to resign?
How did Machtinger v. HOJ Industries impact employment contract termination clauses?
The Court ruled that if a termination clause in an employment contract provides less than statutory minimum notice, the entire clause is void, and common law reasonable notice applies instead.
Why is Machtinger v. HOJ Industries important for employers drafting contracts?
Employers must ensure termination clauses meet or exceed statutory minimums, or else they risk having the entire clause invalidated.
Sarah’s employer cuts her salary by 18% without prior notice or consultation. She continues working for three months but then decides to sue for constructive dismissal. What legal arguments can she make, and what might be the counterargument?
Sarah can argue that the unilateral salary reduction constitutes a fundamental breach of contract, following the precedent set in Farber v. Royal Trust. However, the employer may counter that she condoned the change by continuing to work for three months.
John is called into a meeting and told, ‘You can either resign today, or we will fire you tomorrow.’ He resigns and later claims wrongful dismissal. What legal principle applies?
John’s resignation was not voluntary but forced, meaning it could be considered a wrongful dismissal. Courts have ruled that an ultimatum like this invalidates the resignation.
