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Wrongful Dismissal

23. whether emotional distress damages are available in wrongful dismissal cases.  
Emotional Distress Damages in Wrongful Dismissal Cases: An Examination of Legal
Precedents and Implications
Wrongful dismissal, often referred to as wrongful termination, occurs when an employee
is discharged from their position in violation of the terms of their employment contract or
breaches statutory notices. While the primary remedies in wrongful dismissal cases
typically focus on lost wages and benefits, the question of whether employees can also
seek damages for emotional distress has increasingly gained legal and public attention.
The prevailing view on emotional distress damages varies significantly across
jurisdictions, influenced by state and provincial laws, case precedents, and the specific
circumstances surrounding each case.
At the core of wrongful dismissal claims is the potential for employees to not only
recoup financial losses incurred from their sudden loss of income but also seek
compensation for the psychological and emotional toll that such terminations can
impose. Emotional distress, within the context of wrongful dismissal, can arise from the
abrupt loss of a job, the negative impact on self-esteem, anxiety about future
employment prospects, and the stigma attached to being wrongfully terminated.
In jurisdictions recognizing emotional distress damages in wrongful dismissal cases,
courts often draw upon tort principles, particularly in cases where the employer's
conduct can be characterized as egregious or "cruel." A pivotal case in this realm is
Barker v. ICM (1997), where the Ontario Court of Appeal recognized that certain
dismissals that are carried out in a manner meant to humiliate the employee or where
the employer has engaged in conduct amounting to bad faith can warrant such
damages. However, establishing entitlement to emotional distress damages typically
requires that the employee demonstrate both the nature of the emotional distress
experienced and its direct link to the wrongful dismissal.
One of the most contentious aspects of claiming emotional distress damages in
wrongful dismissal cases revolves around the burden of proof. Employees must provide
credible evidence that substantiates their claims; vague descriptions of distress or its
generalized impact may not suffice. Courts often require medical documentation or
expert testimony to validate claims for emotional distress. This requirement creates a
potential barrier for employees seeking redress, as obtaining corroborative evidence
may not only be costly but also deeply personal, involving discussions around mental
health that some might find uncomfortable or stigmatizing.
Despite these hurdles, jurisdictions that do allow emotional distress claims often see
them as an essential tool in ensuring workplace justice and promoting accountability
among employers. The intent behind such awards is not merely to compensate the
harmed party financially, but also to underscore the principle that employers have a duty
to treat their employees with respect and dignity.

The concept of "intentional infliction of emotional distress" (IIED) emerges as a critical
area of inquiry in many wrongful dismissal cases. Here, a plaintiff must prove that the
conduct of the employer was not just negligent, but outrageous or extreme, leaving
them feeling psychologically vulnerable. However, proving IIED is notoriously difficult;
courts set a high bar to ensure that only truly egregious conduct yields damages. For
instance, if an employer's dismissal was done in a crude or humiliating manner, this may
rise to the level of IIED.
Conversely, certain jurisdictions may impose limits on the recovery of emotional distress
damages in wrongful termination cases. For example, some legal systems may restrict
damages to pecuniary losses directly attributable to the job loss, such as lost wages
and future earning potential, categorizing emotional damages as speculative. This
limitation is often justified on the grounds that emotional distress is highly subjective,
and quantifying it in monetary terms is fraught with challenges.
The role of public policy in wrongful dismissal cases with regard to emotional distress
claims cannot be understated. Many advocates argue that permitting such damages
aligns with broader societal values that emphasize mental health and emotional well-
being. By recognizing the profound impacts that employment has on an individual's
sense of identity and community, courts validate employees' experiences, fostering a
more empathetic workplace culture and encouraging employers to adhere to ethical
standards.
However, there remains a dichotomy between employee protections and employer
rights. Employers often argue that allowing expansive claims for emotional distress
could lead to a culture of litigation, placing excessive burdens on businesses and
adding to the stigma around legitimate disciplinary actions or layoffs. Critics argue that
emotional distress claims could deter employers from making necessary workforce
changes for fear of facing significant legal repercussions—making it challenging to
navigate the delicate balance between employee protection and employer flexibility.
In reviewing recent case law, one can observe shifts in judicial attitudes that reflect
changing societal norms regarding employment practices, workplace harassment, and
mental health awareness. Notably, there appears to be a trend toward greater
acceptance of emotional distress damages in jurisdictions where courts are increasingly
attuned to the psychological impacts of job loss, especially in a world where job security
is less stable.
In Ontario, the availability of emotional distress damages in wrongful dismissal cases
continues to be a complex area of law, characterized by a patchwork of judicial
decisions and evolving societal views on emotional well-being. Where emotional
distress damages are recognized, they underscore the significance of employer conduct
and the profound impacts of job loss on mental health. The trajectory of legal standards
in this realm will likely continue to develop, informed by ongoing dialogues around
workplace rights, employee dignity, and the pursuit of a balanced approach to employee
claims. As both the legal landscape and societal attitudes toward mental health evolve,

the intersection of emotional distress and wrongful dismissal promises to remain a
significant focal point in employment law discussions.

24. how to quantify reputational damage in sexual harassment cases.  
Quantifying Reputational Damage in Sexual Harassment Cases: An Exploration of
Challenges and Approaches
Sexual harassment is a pervasive issue that can deeply impact the lives of victims, not
only triggering emotional and psychological distress but also leading to significant
reputational damage. For individuals who have experienced harassment in the
workplace or other environments, the implications often extend well beyond immediate
harm. The reputational fallout can affect personal and professional relationships, career
opportunities, and overall quality of life. However, quantifying reputational damage in
sexual harassment cases poses considerable challenges, both legally and practically.
This article aims to explore the complexities of this process, the methods available for
quantification, and the role of courts in addressing such claims.
Reputational damage refers to the harm inflicted on an individual’s standing or
perception within their community or professional sphere due to negative perceptions or
information. In the context of sexual harassment, this damage can manifest overtly, as
victims may face skepticism or hostility from colleagues and peers, or covertly, with
whispered insinuations affecting their credibility and potential for career advancement.
Recognizing this damage is vital not only for victim compensation but also for fostering
a culture of accountability and discouraging harassment.
One of the primary challenges in quantifying reputational damage is the inherently
subjective nature of reputation itself. Unlike economic losses, such as lost wages or
medical expenses, reputational harm is intangible and difficult to measure. Victims may
experience feelings of shame, isolation, and anxiety that do not easily translate into
financial terms. Additionally, the effects can vary widely depending on the victim’s social
and professional context, making it challenging to establish a one-size-fits-all formula for
loss.
Several approaches have been used in attempts to quantify reputational damage in
sexual harassment cases. One possible avenue is through the evaluation of tangible
losses linked to the harassment incident. For instance, if a victim faced demotion, job
loss, or difficulty securing new employment due to negative perceptions, they might
quantify this damage by calculating the difference in earnings over a specified period.
This approach would necessitate thorough documentation and evidence, such as pay
stubs, performance reviews, and job applications tracking responses over time.
Another method for quantifying reputational damage involves market analysis,
particularly in cases where the victim is an influential public figure. For example,
celebrity individuals may experience a drop in endorsements, sponsorships, or public
engagements following allegations of harassment, directly affecting their income.
Assessing the economic impact of lost opportunities plays a crucial role in assigning a

financial value to reputational harm. This type of analysis might rely on comparative
metrics—such as income fluctuations following the incident or the decrease in
marketability relative to peers in similar positions.
Legal experts often point toward the role of surveys and testimonials in supporting
claims for reputational damages. Victims could engage market researchers or social
scientists to conduct surveys aimed at quantifying shifts in reputation pre- and post-
harassment. Such research might involve measuring public opinion or stakeholder
perceptions within the relevant community or industry. While this method offers insight
into reputational changes, it is not without its own difficulties, such as ensuring the
validity and reliability of the survey instruments used.
In legal contexts, expert testimony may serve as another vital avenue for establishing
credibility in a claim for reputational damage. Experts in psychology, human resources,
or communications can be called upon to discuss the broader ramifications of sexual
harassment in workplace dynamics and its impact on an individual’s reputation. Their
insights can help elucidate how victims may face social fallout, loss of professional
relationships, or barriers to advancement, further supporting the quantification of
reputational harm.
Moreover, courts have established precedents that recognize reputational damage and,
in some cases, provide frameworks for compensating victims. The recognition of
defamation claims can play an essential part in this conversation. If the harassment
incident involves false allegations or statements made about the victim—whether
publicly disseminated or shared within their professional network—damages may be
claimed as part of a defamation lawsuit. Legal structures around defamation typically
require the plaintiff to demonstrate that the statements were false and damaging to their
reputation, thereby offering a potential pathway to quantifying harm.
Nonetheless, difficulty remains in navigating the distinction between reputational
damage attributable to the incident itself and that which comes from the public’s or
employers’ perceptions of the victim. Unfortunately, victims of sexual harassment often
find themselves contending not just with the immediate fallout of their experiences but
also with significantly altered personal narratives that can be long-lasting. Efforts to
quantify reputational harm must take into account the broader social context, including
potential biases against victims that exist within organizational structures or societal
norms.
Beyond the technicalities of quantification, there exists an ethical dimension to consider.
The legal system's focus on financial compensation can sometimes overshadow the
intent to rectify harmful behaviors or pursue justice for victims. Advocates for change
emphasize that while it is essential to quantify reputational damage for the sake of
compensation, it is equally important to foster a culture of accountability, encouraging
organizations to take proactive steps in addressing workplace harassment. Education
and training initiatives aimed at preventing harassment and promoting respectful

workplaces can serve as both preventative measures and remedial pathways for
damage caused.
In Ontario, quantifying reputational damage in sexual harassment cases presents a
multifaceted challenge shaped by legal, social, and ethical considerations. While
various methods exist for approaching this task—including assessing economic
impacts, leveraging expert opinion, and utilizing social research—the nature of
reputation complicates these efforts. Ultimately, the responsibility falls not solely on
individual victims to seek redress but also on society to recognize the profound
consequences of harassment and commit to fostering environments where all
individuals can thrive without fear of discrimination or harm. As the dialogue surrounding
sexual harassment evolves, so too must our approaches in understanding, quantifying,
and addressing the reputational damage that can irreparably affect individuals’ lives and
careers.

25. how front pay and back pay are calculated in wrongful dismissal settlements.  
Calculating Front Pay and Back Pay in Wrongful Dismissal Settlements
Wrongful dismissal, a significant issue in employment law, occurs when an employee is
terminated from their position without just cause or without adherence to the proper
procedures outlined in their employment contract. When wrongful dismissals happen,
employees often seek compensation for their losses, aiming to recover wages and
benefits that they have lost as a result of their termination. Two critical components that
come into play in such cases are front pay and back pay. Understanding how these
elements are calculated is essential for both employees seeking redress and employers
navigating the complexities of wrongful dismissal claims.
What is Back Pay?
Back pay refers to the compensation owed to an employee for the period between their
wrongful termination and the resolution of their claim or their reinstatement. It is
designed to restore the employee to the financial position they would have been in had
the wrongful dismissal not occurred. Back pay typically encompasses more than just
wages; it can also include bonuses, overtime pay, and benefits that the employee would
have accrued during the period following termination.
How is Back Pay Calculated?
The calculation of back pay begins with determining the employee's regular rate of pay
at the time of their termination. To accomplish this, the following factors are taken into
consideration:
1. Salary and Hourly Wages: The employee’s salary at the time of dismissal serves as
the baseline. If the employee was hourly, the total number of hours worked, including
overtime, is paramount for calculation.

2. Additional Earnings: Any additional forms of compensation, such as bonuses or
commission, must also be included. Employers often need to provide documentation or
records of past bonuses and potential commissions for fair assessment.
3. Duration of Back Pay: Back pay continues until the employee finds new, comparable
employment or until the legal case is resolved. Courts will analyze how long it
realistically takes for the employee to get back to work, considering factors such as
industry conditions and the employee's qualifications. If the employee finds a new job
after a few months, the back pay amount would cease at that point.
4. Mitigation: Employees have a duty to mitigate their losses, meaning they must
actively seek new employment during the period of back pay accrual. If an employee
fails to pursue reasonable job opportunities, this may reduce the amount of back pay
awarded.
Back pay may also be adjusted for any interim earnings the employee earns from other
sources while seeking new employment. If an employee has been able to secure
temporary or part-time work, those earnings are deducted from their total back pay
claim.
What is Front Pay?
Front pay, unlike back pay, seeks to compensate an employee for future earnings they
are likely to lose due to their wrongful dismissal. It serves as a forward-looking remedy
that acknowledges the long-term impact of the wrongful termination on the employee’s
financial well-being. Front pay is particularly relevant in cases where reinstatement to
the previous position is either impossible or not practical, often due to strained relations
between the employer and the employee.
How is Front Pay Calculated?
Calculating front pay can be considerably more complex than calculating back pay since
it involves predicting future income losses. Here are key components in determining
front pay:
1. Duration of Future Earnings Loss: Courts will assess how long it is likely to take the
employee to find a comparable job. This estimate can depend on labor market
conditions, the employee’s field of work, and their skills and experience.
2. Expected Future Earnings: The calculation includes determining the employee's
expected salary in a new job. Experts might be called upon to provide testimony
regarding salary standards within the industry or local geographic area to determine
what a comparable position may pay.
3. Potential Reductions in Earnings: If it is likely that the employee will earn less in
future employment than they did in their previous position, these reductions are factored

into the front pay calculation. For instance, if the industry has faced an economic
downturn or if the employee's skills are no longer as sought after in the job market,
these issues will impact the total front pay assessed.
4. Benefits and Bonuses: In addition to salary, any benefits regularly received at the
previous job—such as health insurance, retirement contributions, and paid leave—must
be considered in the front pay figure. These benefits considerably affect the overall
compensation package.
5. Tax Considerations: Front pay, like back pay, is subject to taxation. When calculating
front pay, the potential tax implications should be considered to provide a clearer picture
of the employee’s net earnings.
Factors Affecting Both Back Pay and Front Pay
Several nuances affect both back pay and front pay awards:
- Judicial Discretion: Courts often have broad discretion when determining the
appropriate amounts for back and front pay. Variations in individual cases mean that no
two calculations are exactly alike, and judicial interpretation can influence the outcome
significantly.
- Mitigation Duty: An employee's obligation to mitigate damages plays a critical role in
both calculations. The court may assess whether the employee actively sought
comparable job opportunities and may reduce awarded amounts if they find that the
employee was not proactive in their job search.
- Market Conditions: Economic factors, such as supply and demand for the employee's
skills, can influence both calculations. A thriving job market may lead to more favorable
assessments for front pay, while an economic downturn could complicate or lengthen
the process.
In Ontario
In wrongful dismissal cases, back pay and front pay serve critical roles in ensuring that
employees receive compensation for their losses. Back pay rectifies past wages and
benefits lost due to wrongful termination, while front pay seeks to project future income
losses that might arise from the termination. Calculating these pay components involves
meticulous consideration of salary, benefits, duration of lost earnings, and the job
market, among other factors.
Understanding the intricacies of how back pay and front pay are calculated is essential
for employees seeking justice and employers aiming to fulfill their legal obligations. By
navigating these complex calculations and adhering to good faith effort to restore
employees’ financial standing, both parties can work toward a more equitable resolution
in wrongful dismissal disputes. Ultimately, the aim is not just to assign financial

responsibility but to address the wider implications of wrongful dismissal, ensuring fair
treatment and respect in the workplace.

26. the impact of statutory caps on damages under the Ontario Human Rights Code.  
The Impact of Statutory Caps on Damages under the Ontario Human Rights Code
In Ontario, the human rights framework is guided by the Ontario Human Rights Code
(OHRC), which serves to protect individuals from discrimination in various domains,
such as employment, housing, and services. The Code aims to create an equitable
society by ensuring that all individuals have the right to participate fully and equally in all
aspects of public life. However, victims of discrimination often face barriers to justice,
one of which is the imposition of statutory caps on damages. These caps can
significantly influence the outcomes of human rights claims, shaping not only the
remedies available to victims but also the broader landscape of human rights
enforcement in Ontario.
Understanding Statutory Caps on Damages
Statutory caps on damages refer to limits placed by legislation on the amount of
compensation that can be awarded to individuals who have experienced discrimination.
Under the OHRC, remedies for violations may include compensation for lost wages,
expenses incurred due to discrimination, and non-economic damages related to injury
to dignity, feelings, and self-respect. Historically, the Ontario Human Rights Tribunal
(OHRT) did not impose explicit caps on damages. However, in the wake of various legal
precedents and decisions, certain parameters regarding compensation came into play,
leading to subjective interpretations of what constitutes a fair award.
The 2008 decision in Hawkins v. Ontario (Ministry of Community and Social Services) is
often cited as a turning point in the discussion of damage caps. In the ruling, it was
determined that while there should be limits on punitive damages, the tribunal
maintained discretion over the assessment of compensatory damages, specifically for
injury to dignity, feelings, and self-respect. Nevertheless, in subsequent years, the
Ontario government introduced various legislative measures aimed at improving
efficiency in handling human rights claims, which included references to caps.
The Rationale Behind Caps on Damages
Proponents of statutory caps argue that they serve several important functions.
Primarily, they seek to balance the interests of justice for victims with the need to protect
organizations from potentially exorbitant claims that may threaten their financial viability.
By placing a ceiling on the amount of damages, it is intended that the adjudication
process will become more predictable and manageable.
Furthermore, supporters posit that caps can deter frivolous claims, ensuring that only
legitimate cases are pursued. By limiting potential liabilities, organizations can be

incentivized to improve their compliance with human rights standards and therefore
minimize the cases brought against them.
The Consequences for Victims
While the rationale for implementing statutory caps may be rooted in a desire for
predictability and efficiency, the impact on victims of discrimination is often profound and
multifaceted. One of the primary criticisms is that caps may inadequately compensate
individuals who have suffered significant harm—emotionally, psychologically, and
financially.
For instance, consider cases where an individual experiences prolonged systemic
discrimination in the workplace. The emotional distress and damage to their dignity and
self-respect can far exceed the limits set by statutory caps, leaving victims feeling that
their suffering has not been adequately acknowledged or compensated. Consequently,
these caps can lead to a perception of injustice and minimize the seriousness of
discrimination claims. Victims may walk away with a sense that the systemic failures
they faced are trivialized by arbitrary monetary limits.
A Narrowing Path to Justice
The presence of statutory caps can also lead to a narrowing of the path to justice for
affected individuals. With the knowledge that their potential compensation is limited,
some victims may choose not to pursue their claims. The potential for protracted legal
battles, coupled with the fear that their suffering may not garner fair remuneration, can
discourage victims from seeking recourse. This trend is particularly concerning given
that the OHRC is designed to promote equality and protect individuals against systemic
discrimination.
The chilling effect of caps on damages can exacerbate existing power imbalances in
society. For marginalized groups who already contend with significant barriers in
accessing justice, the imposition of limits on potential compensation can result in a
reluctance to engage with the human rights system altogether. In essence, statutory
caps risk perpetuating the systemic inequalities that the OHRC seeks to eliminate.
Shifts in Legal Strategy
The presence of statutory caps on damages has also resulted in shifts in the legal
strategies employed by both plaintiffs and defendants. Legal representatives for victims
may find themselves recalibrating their approaches, focusing instead on the broader
implications of the discrimination experienced. Instead of seeking maximum financial
compensation, they might pivot to emphasize the need for systemic change, hoping to
secure a wider range of remedies such as policy alterations or organizational training.
On the other hand, defendants may leverage the existence of caps in their defense
strategies, arguing for reduced liability based on the arbitrary limits imposed by the

OHRC. This dynamic can influence negotiation processes, leading to settlements that
may fall short of addressing the real harm suffered by victims.
Potential for Reform
Given the complexities and implications associated with statutory caps on damages,
there is a growing discourse regarding the need for reform within Ontario’s human rights
framework. Advocates argue that the government should revisit the appropriateness of
these caps, particularly in light of changing societal standards around discrimination and
the understanding of its impacts. In doing so, there is potential for fostering a more
equitable legal landscape where victims of discrimination can seek appropriate redress.
Some suggestions for reform include the establishment of tiered compensation
structures based on the severity of the discrimination, allowing for flexibility in
addressing varying experiences. Further, increasing awareness and education about
the implications of statutory caps could encourage greater advocacy for change,
promoting a re-examination of the underlying principles guiding Ontario’s human rights
system.
In Ontario
The impact of statutory caps on damages under the Ontario Human Rights Code is a
nuanced issue that raises significant questions about justice, equity, and the
effectiveness of the human rights framework in Ontario. While these caps may serve
organizational interests and contribute to system efficiencies, they can concurrently risk
diminishing the voice and compensation for individuals who have endured
discrimination. The conversation around statutory caps is pivotal, not merely for shaping
future legal outcomes but for understanding how society values dignity, equity, and
justice in the lives of its citizens. As advocates for change, all stakeholders must
participate in refining Ontario’s human rights system to ensure that it lives up to its
foundational principles of equality and fairness for all.

27. how Ontario courts treat non-monetary compensation (e.g., apologies) in
settlements.  
The Treatment of Non-Monetary Compensation in Settlements by Ontario Courts
In the realm of legal disputes, particularly those involving human rights, employment
law, and personal injury claims, monetary compensation often takes center stage.
However, non-monetary compensation—such as apologies, acknowledgments, and
changes in policy—has gained increasing recognition among Ontario courts as a vital
component of justice and remedial action. While monetary awards can address tangible
losses, non-monetary remedies can facilitate healing, restore dignity, and promote
systemic change. This article explores how Ontario courts perceive, value, and integrate
non-monetary compensation in settlements.
The Legal Framework

The pursuit of non-monetary compensation is particularly relevant in contexts like the
Ontario Human Rights Code (OHRC), which aims to foster an equitable society free
from discrimination. The OHRC explicitly recognizes that remedies can extend beyond
mere financial settlements to encompass a wide array of responses aimed at rectifying
grievances. Non-monetary remedies can include apologies, reinstatement, training
programs, and organizational policy changes. Courts within this framework often
emphasize a holistic approach to justice, recognizing that healing from discrimination or
wrongdoing cannot be measured solely in dollars.
Apologies as a Form of Non-Monetary Compensation
Apologies carry significant weight in the context of non-monetary compensation. They
serve as formal acknowledgments of wrongdoing, conveying accountability and
recognition of harm. Research has shown that a sincere apology can have a profound
emotional impact on victims, acting as a critical step towards healing and closure. In
Ontario, courts often recognize this emotional dimension, validating apologies as an
essential element of remedying injustice.
In many cases, an apology is sought as a fundamental component of the settlement
process. For instance, in human rights cases where individuals have faced
discrimination, courts may encourage or mandate an apology from the offending party.
This acknowledgment is not merely symbolic; it signifies a recognition of the victim’s
experience and can foster a sense of validation that monetary compensation alone may
not provide.
Case Law Illustrating the Role of Non-Monetary Compensation
Several key cases in Ontario highlight the judicial attitude toward non-monetary
compensation. In decisions related to human rights violations, courts have consistently
suggested that non-monetary remedies should be part of the settlement discussions.
For example, in Hawkins v. Ontario (Ministry of Community and Social Services), the
Ontario Human Rights Tribunal addressed issues of systemic discrimination and the
need for remedial measures that included both monetary compensation and non-
monetary responses such as training programs and commitments to change harmful
practices. Here, the tribunal underscored the importance of not just financial restitution
but also a broader commitment to equity and inclusion.
Similarly, in Harris v. Ontario (Ministry of Municipal Affairs and Housing), the tribunal
ordered the government to provide an apology to the complainant as part of the remedy.
This case illustrated how an apology was integral to the resolution process, reinforcing
the notion that acknowledgment of wrongdoing is a crucial step toward healing and
preventing future harm.
The Consideration of Non-Monetary Compensation in Settlements

In settlement negotiations, non-monetary compensation can play a pivotal role in
achieving resolution. A victim may prioritize an apology or specific changes within an
organization that align with their values and serve their sense of justice. This is
particularly relevant in workplace disputes where relationships are often ongoing and
future interactions are likely.
When organizations recognize the importance of non-monetary remedies in the
settlement process, they can foster a culture of accountability and make systemic
changes that prevent similar incidents in the future. Courts have shown a willingness to
support settlements that incorporate non-monetary remedies, as these commitments
can ultimately promote a healthier relationship between parties and enhance
compliance with human rights principles.
Limitations and Challenges
While Ontario courts exhibit a progressive attitude toward non-monetary compensation,
challenges remain in fully integrating these remedies into the legal framework. One
significant limitation is that parties may prioritize monetary compensation due to its
immediacy and tangible nature, potentially overlooking the emotional and reputational
value of apologies or systemic changes.
In addition, the effectiveness of non-monetary compensation often hinges on the
sincerity and execution of the promised actions. For instance, a forced or insincere
apology may fail to yield the desired healing effects for the victim. Courts thus must
balance this disparity, assessing whether non-monetary compensation is appropriately
implemented and aligned with the needs of the individual.
Furthermore, organizations may resist non-monetary remedies due to fears of admitting
liability or expressing vulnerability. This hesitance can create obstacles in negotiations
and may lead to prolonged disputes. Courts play a vital role in guiding parties through
these complexities, reminding them of the potential benefits associated with non-
monetary compensation.
The Future of Non-Monetary Compensation in Ontario Courts
As our understanding of justice evolves, so too must the legal framework surrounding
non-monetary compensation in Ontario courts. A growing recognition of the importance
of dignity, healing, and relationship restoration highlights the critical role these remedies
can play in achieving just outcomes.
The advocacy for non-monetary compensation is gaining traction, with more individuals
emphasizing these remedies in their claims and negotiations. As case law continues to
develop, it is expected that courts will increasingly incorporate non-monetary remedies
into their frameworks, developing guidelines that encourage parties to consider the
importance of apologies, policy changes, and systemic adjustments.

Moreover, public awareness around the psychological and emotional effects of
wrongdoing may promote broader acceptance of non-monetary compensation as a vital
aspect of justice. Organizations that embrace these remedies can mitigate reputational
damage and rebuild trust, contributing to more positive and respectful interactions
moving forward.
In Ontario
The treatment of non-monetary compensation in Ontario courts represents a significant
evolution in the pursuit of justice. While monetary awards remain a crucial aspect of
legal remedies, the emphasis on non-monetary solutions—such as apologies, policy
changes, and accountability—underscores the need for a more holistic approach to
resolving disputes. Courts have increasingly recognized the value of these remedies in
facilitating healing and promoting systemic change, illustrating a recognition that justice
is multifaceted.
As advocates for change and justice continue to push for the integration of non-
monetary compensation into legal settlements, the landscape of Ontario’s legal
framework is likely to evolve further, fostering a more comprehensive understanding of
justice that extends beyond monetary considerations. In doing so, Ontario courts can
continue to honor the dignity of individuals and promote fairness within society as a
whole.

28. whether harassment victims can claim future wage loss.  
Claiming Future Wage Loss for Harassment Victims: An In-Depth Analysis
Workplace harassment can have devastating effects on individuals, leading not only to
emotional and psychological distress but also to significant economic consequences.
Victims of harassment may find themselves questioning their ability to continue in their
current roles or even their future employability. Consequently, a pertinent legal question
arises within this context: can victims of harassment claim future wage loss as part of
their compensation in legal proceedings? The answer to this query is complex and
multifaceted, depending on various factors, including the jurisdiction in which the claim
is made, the nature of the harassment, and the specifics of the victim’s situation.
Understanding Harassment in the Workplace
Workplace harassment encompasses a range of behaviors, including bullying,
discrimination based on personal characteristics, and sexual harassment. Such
behaviors create a hostile work environment and may lead to tangible harms, including
anxiety, depression, and a diminished sense of self-worth. Additionally, the
psychological toll that harassment extracts on its victims can impair their job
performance and overall quality of life.
Given these profound impacts, victims often seek legal redress through channels such
as human rights tribunals or civil court, where they can pursue claims for damages. In

doing so, victims may consider a variety of forms of compensation, including past wage
loss, emotional suffering, and, crucially, future wage loss.
The Concept of Future Wage Loss
Future wage loss refers to the potential earnings that a victim of harassment could have
earned had the harassment not occurred. The calculation of future wage loss typically
involves analyzing a variety of factors, including the victim's current salary, potential
salary increases, career trajectory, and the length of time they reasonably expect to
remain in the workforce.
In cases where harassment has led to a termination of employment or forced the victim
to leave their job, demonstrating future wage loss becomes even more crucial. The
victim's ability to secure equivalent employment in the future can be challenged by the
emotional and psychological scars left by the harassment.
Legal Precedents and Considerations
In Ontario, the treatment of claims for future wage loss in harassment cases is defined
by various legal precedents and the overarching framework of employment law. Courts
and tribunals typically consider the concept of future wage loss in the context of the
broader goals of compensatory justice. The aim is to restore the victim as closely as
possible to their position prior to the harm suffered.
For victims of harassment, establishing a legitimate claim for future wage loss hinges on
several factors, including:
1. Causation: It's essential to demonstrate that the harassment directly influenced the
victim's inability to secure future employment or affected their job performance. This
often requires expert testimony from psychologists or economic analysts who can
substantiate the impact of the harassment on the victim's ability to work.
2. Mitigation: Victims are generally required to take reasonable steps to mitigate their
losses. This means they should actively seek new employment or take measures to
improve their employability, such as undergoing training or education. Courts will often
examine whether the victim made a genuine effort to reduce their losses when
calculating future wage loss.
3. Earnings Potential: Victims must provide evidence regarding their earning capacity,
including their qualifications, experience, and historical wage rates, as well as potential
future salary trajectories. This can involve presenting salary surveys, evidence from
past earnings, or expert testimony on industry standards.
4. Engagement with Opportunities: Some victims may argue that harassment has
tarnished their reputation or created a stigma that hampers their future job prospects.

Proving this claim can be challenging and requires a detailed examination of the local
job market conditions and the victim's specific skill set.
Case Studies and Trends
Several significant cases have illuminated the factors regarding future wage loss claims
related to workplace harassment. For example, in the landmark case of McKinley v. BC
Tel, the Supreme Court of Canada recognized that damages could encompass both
past and future losses. The court emphasized the necessity of compensating victims for
the full extent of damages incurred due to employer misconduct, laying the groundwork
for expanding the definition of what constitutes compensable losses.
In another illustrative case, Carter v. Canada (Attorney General), the victim experienced
harassment and bullying, leading to long-term psychological effects that impeded her
ability to work. The court ultimately awarded her future wage loss as part of the
settlement, underscoring the recognition that ongoing emotional and psychological
distress could severely impact an individual’s career trajectory.
Challenges in Claiming Future Wage Loss
Despite these successes, numerous challenges persist for harassment victims seeking
future wage loss compensation. One significant hurdle is the stigma surrounding mental
health issues, which may be deeply ingrained in workplace culture. Victims may be
reluctant to disclose their psychological struggles, fearing further discrimination or
negative repercussions when applying for new positions.
Moreover, the burden of proof often rests heavily on the victim’s shoulders. They must
convincingly demonstrate how the harassment impeded their ability to pursue future
employment opportunities and what precise economic losses have arisen as a result.
This requirement can be daunting, particularly in cases involving more subtle forms of
harassment or when the impact on mental health is less visible.
Additionally, determining future wage loss can be inherently uncertain. Economic
conditions fluctuate, and the job market can shift rapidly, which complicates any attempt
to predict future earnings accurately. For example, a victim in a declining industry may
face significant hurdles in securing comparable employment, while another individual
may find a wealth of opportunities in a growing field.
The Importance of Legal Representation
Due to the complexities surrounding claims for future wage loss, it is essential for
victims of harassment to seek legal representation. Experienced employment lawyers
can help navigate the intricacies of the legal process, assess the viability of claims, and
gather critical evidence to support an assertion for future wage loss. By providing
strategic guidance and advocacy, legal professionals can help victims present their

cases compellingly to courts or tribunals, increasing their chances of obtaining
appropriate compensation.
In Ontario
Victims of harassment face unique challenges as they navigate the path toward justice
and redress. The possibility of claiming future wage loss adds a crucial dimension to
their cases, allowing for potential recognition of the profound impact that harassment
can have on a person's life and career. As courts increasingly acknowledge the
legitimacy of these claims, support systems and legal resources must continue evolving
to empower victims in their pursuit of justice. Ultimately, addressing future wage loss in
the context of workplace harassment is not just a matter of economic compensation; it
symbolizes a broader commitment to restoring dignity and fairness in the workplace,
ensuring that all employees feel valued, respected, and able to contribute meaningfully
to their fields.

29. the legal test for aggravated damages in wrongful dismissal cases.  
Understanding the Legal Test for Aggravated Damages in Wrongful Dismissal Cases
In wrongful dismissal cases, the legal implications and consequences of terminating an
employee without just cause can be profound, not only for the employer but also for the
employee. Beyond the basic recovery of lost wages, there are instances where an
employee may seek additional damages in the form of aggravated damages. These
damages provide compensation for the distress caused by the manner in which the
dismissal occurred, acknowledging the emotional and psychological toll that can result
from a wrongful termination. Understanding the legal test for aggravated damages in
wrongful dismissal cases is crucial for both employees seeking redress and employers
navigating the legal landscape.
Defining Wrongful Dismissal
Wrongful dismissal occurs when an employer terminates an employee's employment
contract without a just cause or fails to provide the proper notice or payment in lieu of
notice. Under common law, employers are typically required to give reasonable notice of
termination unless the dismissal is justified by just cause. When employers fail to meet
these obligations, they expose themselves to legal claims for wrongful dismissal.
The Basis for Aggravated Damages
Aggravated damages are not automatically awarded in all wrongful dismissal cases.
Instead, they are granted in recognition of the mental distress and humiliation that an
employee may experience due to the circumstances surrounding their termination.
Courts generally consider aggravated damages in cases where the dismissal was not
merely a contractual breach but involved additional elements of bad faith or malice on
the part of the employer.

The Legal Test for Aggravated Damages
The approach to awarding aggravated damages in wrongful dismissal cases can vary
depending on the jurisdiction, but certain fundamental principles apply across the board.
Courts typically utilize a two-part legal test to assess whether aggravated damages are
warranted. These components include:
1. Establishing Bad Faith Conduct by the Employer: The first part of the test focuses on
the employer's conduct during the dismissal process. Employees seeking aggravated
damages must demonstrate that the employer acted in bad faith, with elements that go
beyond a mere breach of contract. This can include situations where the employer
engages in conduct that is oppressive, insensitive, or vindictive. Actions that might give
rise to aggravated damages include unnecessary public humiliation, failure to provide
adequate reasons for termination, or lying about the circumstances surrounding the
dismissal. Essentially, the courts will look for evidence that the employer's behavior was
reprehensible in connection with the dismissal.
2. Corroborating Evidence of Emotional Distress: The second part of the test requires
the employee to present evidence that demonstrates the emotional or psychological
impact of the wrongful dismissal. This often involves documenting symptoms of distress
such as anxiety, depression, or other psychological effects that arose as a direct result
of the employer's conduct. Testimony from the affected employee, as well as expert
reports from mental health professionals, can help substantiate claims of emotional
distress and bolster the case for aggravated damages. Courts will typically require
specific and compelling evidence rather than general assertions to level the basis of
aggravated damages.
Relevant Case Law
The legal principles surrounding aggravated damages in wrongful dismissal cases have
been shaped by various key decisions in Canadian courts. One notable case that
established a precedent for aggravated damages is Doucet v. Caledon (Township of),
wherein the Ontario Court of Appeal upheld an award of aggravated damages based on
the employer’s bad faith and the emotional suffering experienced by the employee. In
this case, the employee was terminated without cause, but the employer's conduct
during the termination process, characterized by insensitivity and a lack of
professionalism, warranted additional damages aside from lost wages.
Similarly, in Kerr v. Danier Leather Inc., the Supreme Court of Canada ruled on the
employer's responsibility to conduct dismissals in a manner that is fair and reasonable.
The Court emphasized that dismissals carried with them responsibilities that extend
beyond the contractual framework, and a failure to observe these obligations could
justify an award for aggravated damages.
Quantifying Aggravated Damages

While it is established that aggravated damages can be awarded for wrongful dismissal,
there is no fixed formula for quantum. The amount awarded depends on the specific
circumstances of each case, particularly regarding the severity of the employer's
conduct and the extent of the emotional distress suffered by the employee. Courts tend
to exercise discretion in determining the appropriate amount, drawing upon previous
case law and the particular facts of the situation.
In practice, aggravated damages can range widely, from several thousand to tens of
thousands of dollars, depending on the gravity of the situation. For instance, in cases of
particularly egregious employer conduct—such as a failure to offer any severance
package or a public character assassination during the dismissal period—awards may
be higher, reflecting the significant impact on the employee's mental well-being and
reputation.
Challenges in Pursuing Aggravated Damages
Despite the potential for recovery, pursuing aggravated damages in wrongful dismissal
cases can be challenging for employees. The burden of proof lies with the employee to
not only establish wrongful dismissal but also to demonstrate the requisite elements of
bad faith conduct and emotional distress. As mentioned earlier, the subjective nature of
emotional distress can complicate claims, as courts demand concrete evidence rather
than anecdotal claims.
Moreover, employers often defend against claims of aggravated damages by arguing
that the employee’s emotional distress was either exaggerated or not directly related to
the termination. They may also argue that the dismissal was procedurally sound,
contesting allegations of bad faith. Employees must be prepared to counter these
defenses with compelling, credible evidence and legal arguments.
In Ontario
Aggravated damages form an essential part of the legal landscape surrounding
wrongful dismissal in Canada, offering protection to employees who suffer not only
financial losses but also emotional harm due to their employers' conduct. The legal test
for these damages comprises a significant examination of the employer's behavior
during dismissal and the employee's subsequent psychological distress. As case law
continues to evolve, the principles governing aggravated damages remain a vital
consideration for both employees seeking justice and employers aiming to navigate the
complexities of employment law.
Ultimately, understanding the legal test for aggravated damages serves as an important
reminder of the need for professionalism and ethical conduct in termination processes.
For employers, this underscores the importance of conducting dismissals with care,
recognizing that their actions do not occur in a vacuum and may have lasting
repercussions on the lives of employees. For employees, it is a clarion call to assert

their rights and seek appropriate redress for the harms they endure, ensuring that their
experiences are acknowledged and compensated appropriately.

30. how human rights remedies differ from common law remedies in Ontario.  
Understanding the Distinction Between Human Rights Remedies and Common Law
Remedies in Ontario
In Ontario, the landscape of legal remedies consists of two distinct yet interconnected
domains: human rights remedies and common law remedies. Each plays a crucial role
in addressing grievances against discrimination, unjust treatment, and violations of
rights within the province. However, the mechanisms, goals, and standards of redress
differ significantly between these two legal frameworks. Understanding these
differences is vital for individuals seeking justice and for professionals navigating the
complexities of Ontario’s legal system.
The Framework of Human Rights Remedies
Human rights remedies in Ontario are primarily governed by the Ontario Human Rights
Code (OHRC). This code serves as a legislative framework designed deliberately to
protect individuals from discrimination based on specific grounds, including race, sex,
sexual orientation, disability, and many others. The OHRC establishes human rights
tribunals with the authority to adjudicate complaints of discrimination, harassment, and
failure to accommodate.
The primary purpose of human rights remedies is to promote equality and protect
individuals’ rights within society. The remedies available under the OHRC are not
merely compensatory; they aim to restore dignity, promote equality, and ensure access
to rights by addressing systemic issues within society. The remedies can include:
1. Monetary Compensation: This includes damages for hurt feelings, injury to dignity,
and, in some instances, lost wages as a result of discrimination. The aim is to make the
victim whole and to acknowledge the emotional and psychological damage caused by
the discriminatory act.
2. Injunctions: The tribunal has the authority to issue orders requiring the respondent to
cease discriminatory practices. This forward-looking remedy aims to prevent future
violations and promote systemic change.
3. Policy Changes: Human rights tribunals can mandate that organizations implement
new policies or training programs to prevent further discrimination and promote
inclusivity.
4. Restorative Actions: Remedies may also include the provision of specific services,
accommodations, or changes to existing practices that will rectify the discriminatory
situation.

The human rights framework focuses heavily on ensuring that individuals are treated
with dignity and respect. The approach taken in human rights cases is often more
informal and accessible than that of common law courts. Human rights tribunals aim to
provide a quicker and more straightforward process for addressing grievances,
understanding that the complexities of discrimination demands a different approach
than traditional legal remedies.
The Framework of Common Law Remedies
In contrast, common law remedies in Ontario fall under the purview of the judicial
system and are primarily governed by legislation, case law, and the principles
established in prior court decisions. Common law, in this context, pertains to legal rights
that individuals can pursue through the civil court system. Common law remedies
typically involve compensation for damages incurred due to a breach of duty,
negligence, contractual obligations, or tortious conduct.
Common law remedies can include:
1. Damages for Loss: This generally entails monetary compensation for actual losses,
including lost wages, medical expenses, and other quantifiable damages resulting from
the wrongful act.
2. Punitive Damages: In specific situations, courts may award punitive damages
intended to punish the offender and deter similar wrongful conduct in the future.
3. Specific Performance: In contract cases, courts can order that a party fulfill their
obligations as outlined in the contract, rather than providing monetary compensation.
4. Injunctions: Similar to human rights remedies, common law courts can also issue
injunctions to prevent an individual or entity from engaging in actions that would cause
harm or violate rights.
Key Differences Between Human Rights and Common Law Remedies
While both human rights remedies and common law remedies pursue justice, they differ
in several fundamental aspects:
1. Purpose and Philosophy: Human rights remedies focus on promoting equality and
addressing systemic discrimination, while common law remedies primarily seek to
compensate individuals for losses suffered due to breaches of legal duties or
obligations. The overarching philosophy of human rights laws is to ensure equitable
treatment and to promote societal change, whereas common law is traditionally focused
on compensating victims.
2. Scope of Application: Human rights remedies apply specifically to instances of
discrimination and harassment as defined under the Ontario Human Rights Code.

Common law remedies, on the other hand, cover a broader range of legal issues
encompassing civil wrongs, torts, contracts, and negligence.
3. Proceeding Structure: Human rights complaints are generally made through a tribunal
process that is often less formal than court proceedings, allowing for a more accessible
experience for complainants. Common law cases are heard in judicial courts, which
follow strict rules of procedure and evidence, typically involving lawyers, formal motions,
and protocols that can make navigating the system more complex.
4. Burden of Proof: In human rights cases, the burden of proof often lies with the
respondent once the complainant establishes a prima facie case of discrimination. This
shifts the duty to the accused party to demonstrate that their actions did not constitute
discrimination. In common law cases, the burden remains constant, with the plaintiff
required to prove their case by the preponderance of evidence.
5. Decision-Making: Human rights tribunals apply a more inquisitorial approach, where
the adjudicators actively investigate the issues at hand, whereas common law courts
adopt an adversarial approach, whereby two opposing parties present their arguments,
and a judge or jury makes a determination based on the evidence provided.
6. Remedies Offered: As previously discussed, human rights remedies may include
systemic changes and policy alterations, reflecting a broader impact on society
addressing inequalities. Common law remedies, conversely, are generally limited to
monetary compensation and specific contractual performance aimed at remedying
individual grievances.
Interaction Between Human Rights and Common Law
Despite these differences, human rights remedies and common law remedies can
intersect and complement each other. For instance, an individual may choose to file a
complaint with the Human Rights Tribunal and simultaneously pursue a claim in
common law for damages related to the same incident. However, courts often advise
caution when pursuing parallel claims due to the potential for overlapping issues and
the risk of duplicative damages.
In certain cases, findings in human rights proceedings can inform common law actions,
and vice versa. Legal professionals often explore the interplay between these
frameworks when advocating for clients, considering the advantages and limitations of
each avenue for redress.
In Ontario
The distinctions between human rights remedies and common law remedies in Ontario
reflect differing philosophies, functions, and mechanisms designed to address various
forms of injustices. Human rights remedies prioritize societal change and the promotion
of equality by focusing on addressing systemic discrimination, while common law

remedies center on compensating individuals for harm suffered due to breaches of legal
obligations.
For individuals facing discrimination or other injustices, understanding these differences
is key to navigating their legal options effectively and seeking appropriate recourse.
Whether it involves advocating for systemic change through human rights channels or
pursuing monetary justice in common law courts, each pathway offers distinct
possibilities for achieving fairness and ensuring accountability in Ontario’s legal
framework.

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Constructive Dismissal in Ontario  
31. how sexual harassment can lead to constructive dismissal claims.  
Understanding the Connection Between Sexual Harassment and Constructive
Dismissal Claims
Sexual harassment remains a pervasive issue within workplaces, adversely affecting
employees’ mental health, job performance, and overall workplace dynamics. When
faced with an environment characterized by harassment, employees may find
themselves in a position where they feel forced to resign, leading to potential claims of
constructive dismissal. Understanding how sexual harassment can lead to constructive
dismissal claims is essential for both employees who wish to protect their rights and
employers who must foster a safe and respectful work environment.
Defining Constructive Dismissal
Constructive dismissal occurs when an employee resigns due to the employer's conduct
that fundamentally breaches the employment contract. This breach may manifest in
various forms, such as significant changes to job duties, a toxic work environment, or,
crucially, ongoing harassment. In the context of sexual harassment, the conduct of the
harasser—often a colleague, supervisor, or manager—creates an intolerable work
environment, compelling the victim to leave their job.
Under constructive dismissal, the legal principle is that even if an employee formally
resigns, the resignation is treated as a termination due to the employer’s failure to
maintain a safe working atmosphere. This type of claim can lead to recovery of
damages that the employee would have otherwise earned under their employment
contract, had the harassment not forced their resignation.
The Nature of Sexual Harassment
Sexual harassment encompasses a range of unwelcome behaviors of a sexual nature
that create a hostile or intimidating work environment. This can include inappropriate
comments, unwanted advances, sexual coercion, or any behavior that contributes to a
culture of fear and discomfort. The emotional toll of such harassment can be profound,
leading to anxiety, depression, and a sense of isolation among victims.

In many cases, sexual harassment occurs along a power gradient where those in
positions of authority exploit their influence over subordinates. Importantly, the
psychological impact of enduring sexual harassment can make remaining in a toxic
work environment untenable. As a result, employees may feel compelled to leave their
positions to escape the harassment, thus laying the groundwork for constructive
dismissal claims.
The Legal Framework for Constructive Dismissal
In Canada, employees who wish to claim constructive dismissal must first establish that
their employer's actions amounted to a significant breach of the employment contract. In
cases involving sexual harassment, employees typically argue that the employer failed
to provide a safe working environment, which can be seen as a violation of their
contractual obligations.
To succeed in a constructive dismissal claim based on sexual harassment, the
employee must demonstrate:
1. Existence of Harassment: The employee must prove that harassment occurred. This
could involve documented instances of unwanted attention, inappropriate comments, or
other forms of mistreatment. Evidence may come from emails, messages, witness
testimonies, or any records of reporting the harassment to human resources or
management.
2. Employer's Knowledge and Response: It is crucial to establish that the employer was
aware of the harassment and failed to take appropriate action. This could mean not
investigating reported incidents, ignoring complaints, or creating an environment where
harassment is tolerated. Employers have a legal obligation under human rights
legislation to provide a safe workplace and must respond to harassment complaints
promptly and adequately.
3. Intolerable Work Environment: The employee must demonstrate that the harassment
created an intolerable work environment such that resignation was a reasonable
response. The standard often hinges on whether a reasonable person in the same
situation would find continued employment unbearable. Factors that a court may
evaluate include the duration and severity of the harassment, the employee's efforts to
address the issue, and the overall impact on the employee’s mental health.
The Role of Employers
Employers play a crucial role in preventing sexual harassment and mitigating its effects
on employees. They have a legal and moral obligation to establish comprehensive
policies addressing harassment, provide training to ensure all employees understand
acceptable behavior, and create clear reporting mechanisms for victims. With effective
policies in place, employers can foster a culture of respect and accountability while
minimizing the risk of constructive dismissal claims arising from harassment.

When an employee voices concerns about sexual harassment, employers must act
swiftly and decisively. Ignoring or downplaying these complaints is not only unethical but
can also leave employers vulnerable to legal action. A failure to adequately address
reported harassment could be seen as contributing to a hostile work environment,
making it difficult for the employee to continue working, and opening the door to a
constructive dismissal claim.
The Claims Process
The process for filing a constructive dismissal claim based on sexual harassment
typically begins with the affected employee seeking legal counsel to assess their case.
Documentation of harassment and any correspondence with the employer—such as
reports of the harassment, responses, or lack thereof—will be critical in building the
claim.
Employees who resign due to harassment should provide their employers with a clear,
written notice that outlines the reason for their resignation. This notice serves as a
formal declaration that their decision to leave was not voluntary in the traditional sense
but rather a consequence of the intolerable work circumstances.
Once a claim is filed, it may proceed through various avenues, including the Ontario
Human Rights Tribunal or the formal civil courts. Each pathway has distinct procedures
and timelines, so clarity on the legal process is vital for the employee seeking justice.
Challenges in Proving Constructive Dismissal Claims
While the legal framework permits claims of constructive dismissal linked to sexual
harassment, it is not without its challenges. Employees must bear the burden of proof,
which can be difficult given the often personal and private nature of harassment
incidents. Victims may feel embarrassed or reluctant to come forward, especially if their
harassment arose from a trusted colleague or supervisor.
Furthermore, courts will closely examine the conduct of the employee leading up to the
resignation. If an employee has not utilized available reporting channels or has not
given the employer an opportunity to rectify the situation, it may weaken their claim.
Hence, seeking legal advice early on can empower individuals to pursue their claims
effectively and develop strategies to mitigate potential challenges.
In Ontario
Sexual harassment can profoundly impact workplace dynamics, employee morale, and
mental health. When faced with such harassment, employees may find that remaining in
their positions becomes untenable, ultimately leading to claims of constructive
dismissal.

Understanding the connection between sexual harassment and constructive dismissal
not only equips employees with the knowledge to advocate for their rights but also
highlights the urgency for employers to establish safe and respectful workplaces. By
fostering an environment where harassment is systematically addressed, employers
can help prevent the damaging effects of a toxic work culture and minimize the risks of
constructive dismissal claims.
In the end, it is paramount that both employees and employers recognize the need for
effective communication, proper reporting channels, and comprehensive policies aimed
at preventing sexual harassment, thereby ensuring a healthy, safe, and productive work
environment for everyone.

32. the legal threshold for constructive dismissal in Ontario.  
Understanding the Legal Threshold for Constructive Dismissal in Ontario
Constructive dismissal is a significant legal concept in employment law, particularly in
Ontario, Canada. It occurs when an employee resigns due to the employer's conduct,
which makes the work environment intolerable or fundamentally breaches the
employment contract. Unlike traditional dismissal, where an employer explicitly
terminates the employment relationship, constructive dismissal posits that the
employee's resignation is a direct consequence of the employer's actions or omissions.
For individuals navigating this complex issue, it is essential to understand the legal
threshold for constructive dismissal in Ontario.
Defining Constructive Dismissal
At its core, constructive dismissal arises from an employer's failure to uphold the terms
of the employment contract, leading the employee to feel compelled to resign. This
situation can result from various employer actions, including significant changes to job
responsibilities, reduction in pay, harassment, toxic workplace culture, or failure to
provide a safe working environment.
In legal terms, constructive dismissal is treated as a termination of employment. If
successfully proven, it allows the employee to seek damages for the loss of
employment, akin to what they would potentially receive if they had been wrongfully
dismissed.
Legal Framework and Burden of Proof
In Ontario, constructive dismissal claims fall under the common law principles governing
employment relationships. Courts generally require the employee to establish specific
elements to prove a constructive dismissal claim. The legal threshold encompasses the
following key components:
1. Existence of a Fundamental Change: To claim constructive dismissal, an employee
must demonstrate that the employer implemented a fundamental change to the terms or

conditions of employment. This can manifest in various ways, such as a demotion, pay
cut, altered job duties, or even a hostile work environment due to harassment. The
change must fundamentally breach the employment contract.
2. Intolerable Working Conditions: The employee must show that the changes or
conduct created an intolerable atmosphere, making it unreasonable for them to continue
working. Courts often assess this factor from the perspective of a reasonable person in
the same situation. Key considerations include the nature, duration, and frequency of
the changes, as well as the overall impact on the employee’s well-being.
3. Employer's Knowledge and Response: Employees must also establish that the
employer's actions were either wilful, negligent, or amounted to a breach of contract. If
an employee raises concerns about their treatment, the employer's response—or lack
thereof—can significantly influence the case. Courts may look unfavorably on
employers who ignore, downplay, or fail to address complaints of poor treatment or
harassment.
4. Resignation: Finally, the employee must resign within a reasonable timeframe after
the constructive dismissal occurs. Courts generally view an employee's delay in
resigning after experiencing intolerable conditions as a waiver of their right to complain.
An employee should ideally take steps to notify the employer of grievances before
resigning, preserving their position for a potential claim.
Evaluating "Fundamental Change"
One of the most challenging aspects of establishing a constructive dismissal claim is
evaluating what constitutes a "fundamental change" in the employment relationship.
Changes to employment terms must be significant enough to amount to a breach of
contract.
Some common scenarios that may lead to constructive dismissal claims include:
- Demotion: If an employee is demoted without clear justification, it can lead to a claim.
A demotion, particularly if it involves loss of status, responsibilities, or salary, may signal
a fundamental change.
- Reduction of Pay: An employer's unilateral reduction in an employee's salary or
benefits typically constitutes constructive dismissal. An employee should not suffer
financial detriment without their consent as it can result in a breach of their employment
contract.
- Change in Job Duties: A significant alteration of job responsibilities can also trigger a
constructive dismissal claim. If an employee is reassigned to a position or tasks that are
significantly different from what was agreed upon, this change may be deemed
constructive dismissal.

- Harassment or Hostile Environment: Employees subjected to harassment,
discrimination, or a hostile work environment may find their employment conditions
unmanageable. A failure by the employer to address reported harassment could lead to
a constructive dismissal claim.
Intolerability and the Reasonable Person Standard
Once the employee establishes a fundamental change, the next significant legal
threshold revolves around demonstrating that the changes created an intolerable
working environment. Courts assess this through the "reasonable person" standard,
which considers whether a hypothetical reasonable person in a similar situation would
find it unbearable to continue employment.
Factors that courts may consider include:
- Severity and Duration: The more severe the employer's conduct and the longer it
persists, the more likely it is to be deemed intolerable.
- Employee's Actions: How the employee responded to changes can play a role. For
example, if the employee took steps to address the issues by reporting to HR or
attempting to resolve the situation, it may strengthen their case.
- Breakdown of Relationship: Evidence that the employee's relationship with the
employer has irretrievably broken down can also support claims of intolerability.
Timing of Resignation
The timing of the employee's resignation plays a critical role in constructive dismissal
claims. Employees generally must resign within a reasonable time after the constructive
dismissal occurs; otherwise, they may be seen as accepting the new conditions.
What constitutes "reasonable" often depends on the specific circumstances, including
the nature of the changes and the employee's response. Courts have typically found
that resignations made shortly after the employee becomes aware of the conduct
constituting the constructive dismissal are more likely to be viewed as reasonable.
Seeking Legal Recourse
For employees contemplating a constructive dismissal claim, seeking legal advice is
highly advisable. Employment lawyers can assist in navigating the complexities of
employment law, assessing the merits of a case, and gathering necessary evidence.
Documentation—including emails, performance reviews, witness testimonies, and
records of formal complaints—is crucial. These records can substantiate claims that the
employment conditions changed significantly and were intolerable, leading to the
employee’s resignation.

In Ontario
Understanding the legal threshold for constructive dismissal in Ontario is vital for both
employees and employers. Constructive dismissal claims hinge on various factors,
including the existence of a fundamental change in the employment contract, intolerable
working conditions, the employer’s response to complaints, and the timing of the
employee's resignation.
As workplace dynamics continue to evolve, fostering open lines of communication and
addressing employee grievances promptly can mitigate risks associated with
constructive dismissal claims. Employees should be aware of their rights and avenues
for recourse should they find themselves in intolerable situations, while employers must
strive to create safe and respectful environments to support their workforce and prevent
such claims from arising. By recognizing the legal frameworks and expectations
surrounding constructive dismissal, all stakeholders can navigate the nuances of
employment law more effectively.

constructive dismissal

34. how failure to address harassment may constitute constructive dismissal.
In recent years, conversations surrounding workplace harassment have surged to the forefront of
social and legal discourse. Although it has always been a grave concern, the nuanced
understanding of how harassment manifests and affects both individuals and organizations is
more critical than ever. Many employees may not realize that failing to address harassment in the
workplace can lead to significant legal repercussions for employers, notably constituting what is
known as "constructive dismissal." Understanding this legal concept and its implications is vital
for both employees and employers in fostering a healthy work environment.
Constructive dismissal occurs when an employee resigns from their position due to their
employer’s failure to provide a safe and respectful working environment. In essence, the
employee feels they have no choice but to leave because their employer's actions—or
inaction—have made it impossible to continue working under the existing conditions. When
harassment is prevalent and an employer ignores it, such neglect can amount to a breach of the
employment contract due to the hostile work environment the employer has allowed to persist.
Harassment in the workplace can take many forms, including, but not limited to, verbal abuse,
unwanted physical contact, and discrimination based on gender, race, sexual orientation, or other
personal characteristics. It can also manifest through more subtle actions, such as bullying or
pervasive gossip that undermines an individual’s ability to perform their job effectively. The
impact of these behaviors can be profound, leading not only to psychological distress for the
victim but also to decreased productivity, increased absenteeism, and a palpable decline in
workplace morale.
Despite the clear negative effects of harassment, many employees choose to suffer in silence.
They may feel intimidated or fear retaliation, which can lead to a reluctance to report issues
formally. When the harassment goes unreported, or the employer fails to take appropriate action
after a report is made, this creates a toxic environment that can ultimately push the victim to
resign. Hence, it is imperative for employers to adopt robust anti-harassment policies that not
only comply with legal standards but also genuinely seek to support a positive workplace culture.
Employers must first recognize the responsibility they hold in preventing workplace harassment.
Legally, they are required to take reasonable steps to ensure a safe working environment. This
means not only having clear policies in place but also engaging in regular training programs that
inform all employees—including management—about what constitutes harassment and how to
report it. Training should also cover the importance of a prompt and thorough investigation
process. Failure to address harassment allegations adequately not only exacerbates the problem
but also signals to employees that their complaints are not taken seriously.
In the event that harassment persists, and an employee resigns due to the employer’s inaction, the
legal landscape surrounding constructive dismissal comes into play. Employees may pursue
claims based on the argument that they were effectively forced to leave due to the intolerable
conditions created by the employer’s negligence. Legally, they will have to demonstrate that the
employer’s conduct amounted to a breach of the employment contract, and this can be complex.

To qualify as constructive dismissal, the employee must show that the harassment was
sufficiently severe to warrant their departure. Vague complaints or isolated incidents are typically
not enough for a successful claim. Instead, employees often need to provide evidence
demonstrating the ongoing nature of the harassment and the employer's insufficient response.
This evidence could include emails, recorded conversations, witness statements, or documented
complaints made to management.
This evidence-gathering process underscores the importance of maintaining thorough records
from both the employee's and the employer's perspectives. For employees, documenting
incidents of harassment and all communications with supervisors or human resources about these
incidents is crucial. Conversely, it is equally vital for employers to document their responses and
investigations into any allegations. A clear record can significantly impact the precepts of an
eventual constructive dismissal case.
The ramifications of such a revelation can be substantial. A finding of constructive dismissal
could lead to significant financial liabilities for the employer, including compensation for lost
wages, legal expenses, and potentially even damages for emotional distress. More broadly,
reputational damage can result, diminishing employee trust and increasing turnover rates.
Therefore, proactivity can serve as both a legal safeguard and a strategic business advantage.
Additionally, it’s worth noting that handling harassment claims appropriately can result in a host
of positive outcomes beyond merely avoiding legal trouble. When employees see that their
employer is committed to addressing harassment and fostering a safe work environment, morale
increases, productivity is enhanced, and employee loyalty often strengthens. Organizations with
a robust stance against harassment tend to cultivate a more positive culture, making them more
attractive to potential talent.
Ultimately, it stands to reason that addressing harassment in the workplace should be viewed as a
moral obligation as much as it is a legal one. Ethical leadership and genuine care for employee
well-being can catalyze transformative change within an organization. Leaders who actively
advocate for a respectful workplace not only protect their employees but also position their
companies as pioneers in ethical business practices.
In summary, the failure of employers to adequately address harassment in the workplace can lead
to a legal claim of constructive dismissal, with serious implications for both employees and
organizations. It is essential for employers to cultivate an environment where harassment is
actively managed and addressed. For employees, understanding their rights and documenting
harassment can empower them to take appropriate actions if needed. In fostering a culture of
respect, transparency, and accountability, organizations can not only mitigate legal risks but also
enhance their work environment to the benefit of all.

35. how salary reductions may trigger a constructive dismissal claim.
In the realm of employment law, constructive dismissal is a term that encompasses a distinct and
often misunderstood concept. It occurs when an employee resigns due to their employer’s failure
to fulfill their obligations under the employment contract, effectively forcing the individual to
leave the job. One such scenario that can lead to constructive dismissal is a salary reduction.

When a significant change in compensation occurs, the implications can ripple throughout an
organization, often resulting in legal and ethical challenges that employers must navigate
carefully.
A salary reduction can take various forms, including a direct cut in an employee’s base pay,
alterations to commission structures, or the removal of bonuses or benefits that formed a key part
of an employee’s compensation package. Such modifications can be particularly jarring,
especially when they are executed unilaterally without the employee’s consent. When employees
perceive their salary reduction as a breach of the employment contract or an indication of the
employer's diminished regard for their contributions, it can sow the seeds of discontent and
despair, prompting some to consider resignation.
The foundation of constructive dismissal lies in the idea that the employer's actions have
fundamentally altered the terms of employment to such an extent that continued employment
becomes untenable for the employee. A salary reduction can represent a significant change in
these terms, especially if the cut is sizeable enough to affect the employee’s ability to meet their
financial obligations or maintain their standard of living. For many individuals, salary is not just
a number on a paycheck; it reflects their value within an organization, their contributions, and
often, their self-worth. Consequently, a reduction can lead to feelings of being undervalued and
disrespected.
When contemplating whether a salary reduction could lead to constructive dismissal claims,
several factors come into play. Firstly, the size and context of the pay cut are crucial. A minor
decrease might be viewed as an acceptable and reasonable approach in response to economic
conditions or business needs, while a significant reduction could suggest a lack of respect for the
employee's role. Furthermore, the manner in which the reduction is communicated is equally
important. Non-transparent processes, lack of explanation, or failure to engage in open dialogue
often exacerbate employee dissatisfaction and can lead to feelings of betrayal.
To illustrate this concept, consider the story of Emily, a mid-level marketing manager at a
growing tech firm. Emily had consistently exceeded her performance targets and was
instrumental in landing high-profile clients. However, due to economic downturns in the
industry, her employer implemented a broad salary reduction policy that cut salaries by 15
percent across the board, including those of top performers like Emily. Despite the company's
claims of needing to adapt to market conditions, Emily felt unfairly treated given her
contributions. As the months passed, the reduction took a toll on her finances and morale; she
began reassessing her commitment and ultimately resigned, citing the payment cut as a key
factor behind her decision. In Emily's case, she could argue that the salary reduction amounted to
constructive dismissal since her employer had unilaterally altered her compensation, creating an
untenable working situation.
In situations where employees feel compelled to resign, the burden of proof lies with them to
demonstrate that the employer's actions constituted a breach of contract. The employee must
show that the salary reduction significantly impacted their employment conditions. This may
involve gathering evidence that illustrates the reduction’s effect on their job role or their overall
work experience. For example, if an employee can demonstrate that their salary reduction

diverged drastically from industry standards, this could support their case. Additionally,
corresponding changes in workload, job responsibilities, or management styles that coincide with
the salary cut may also bolster the claim that the overall employment terms have shifted
unreasonably.
Employers, on their part, must proceed with caution whenever contemplating salary adjustments.
A well-structured and legally sound approach to salary reduction can mitigate the risks
associated with constructive dismissal claims. Transparent communication is essential;
employers should engage in discussions with employees, explain the reasons for the cut, and
consider employee input before implementing changes. Some organizations opt for temporary
reductions with a clearly outlined plan for reinstatement, which may make employees feel more
secure about their long-term roles.
Moreover, employers should understand their legal obligations and employee rights across
jurisdictions. In some regions, employment contracts may contain explicit terms regarding salary,
making it illegal to alter compensation without mutual agreement. Therefore, consulting with
legal counsel or human resources professionals before enacting salary reductions can help
organizations avoid potential pitfalls.
It is also noteworthy that some employers provide employees with severance packages in light of
salary reductions. Offering alternative compensation can sometimes ease the transition when
further employment becomes untenable. While not a panacea for deep-seated dissatisfaction, it
might serve as a gesture of goodwill that reflects the employer's acknowledgment of the changes.
In addition to salary reductions, other employment changes may contribute to constructive
dismissal claims. Various factors such as demotion, altered work hours, or reductions in job
responsibilities could also create an environment where employees feel their roles have shifted
drastically. The cumulative effect of these changes, viewed through the lens of an individual's
employment relationship, can foster an environment ripe for claims of constructive dismissal.
Societal discussions about fair compensation are evolving, particularly in light of the economic
disparities exacerbated by global events. Employees increasingly expect transparency, fairness,
and equity in compensation practices. They are less likely to tolerate sudden and unexplained
salary cuts. Acknowledging employees' roles and reinforcing their value can cultivate loyalty,
stability, and a motivated workforce.
In Ontario, salary reductions can indeed trigger constructive dismissal claims when they
fundamentally alter the nature of the employment relationship. Employers must tread carefully
when considering such measures, ensuring transparency, thorough communication, and
adherence to legal standards. Meanwhile, employees must be vigilant about their rights and
document any changes that could impact their roles and financial security. Ultimately,
maintaining open lines of communication and fostering an environment of trust can prevent
misunderstandings and reduce the likelihood of claims arising from changes to compensation.
For both parties, the focus should be on creating a respectful, equitable, and supportive
workplace that can withstand the complexities of changing economic conditions.

36. the legal process for proving constructive dismissal in Ontario.
Constructive dismissal is a legal concept that refers to a situation where an employee resigns
because their employer has made significant changes to their working conditions or has breached
fundamental terms of the employment contract, effectively forcing them to leave. In Ontario,
understanding the legal process for proving constructive dismissal is essential for both
employees contemplating resignation under such circumstances and employers looking to
navigate potential legal pitfalls. The legal landscape surrounding this issue can be complex,
encompassing both common law principles and statutory regulations.
Understanding Constructive Dismissal
In Ontario, constructive dismissal arises when an employer's conduct fundamentally alters the
terms of employment, making it untenable for the employee to remain in their position.
Examples of actions that may lead to constructive dismissal include substantial salary reductions,
demotion, significant changes in job responsibilities, or creation of a hostile work environment.
It is crucial to recognize that an employee does not need to wait for the employer to formally
terminate their employment to pursue a claim; the employee may resign in response to these
changes but will carry the burden of proving that such changes constitute constructive dismissal.
The Legal Framework
The legal framework surrounding constructive dismissal in Ontario is established primarily
through common law, which has evolved through numerous court decisions. Additionally, some
statutory protections exist, such as those found in the Ontario Employment Standards Act (ESA).
Although the ESA does not specifically define constructive dismissal, it provides guidelines for
termination and outlines minimum employment standards that can be relevant in a constructive
dismissal claim.
Proving Constructive Dismissal: Key Steps
1. Document Everything: The first step an employee should undertake when considering a
constructive dismissal claim is to meticulously document all incidents and conditions that lead
them to feel they have no choice but to resign. This includes keeping records of communications
with supervisors, emails, changes in job duties, and any relevant correspondence regarding salary
or working conditions. Comprehensive documentation is critical in establishing the context and
proving that the employer’s conduct led to a fundamental change in the employment relationship.
2. Seek Legal Counsel: Engaging a lawyer who specializes in employment law can provide
invaluable guidance throughout the legal process. Constructive dismissal cases can be intricate,
and an experienced attorney can help clarify rights and obligations, assess the strength of the
claim, and determine the most effective legal strategy. Legal counsel can assist in interpreting the
relevant statutes and case law, providing a clearer understanding of the situation.
3. Establish a Breach of Contract: At the core of a constructive dismissal claim is the assertion
that the employer has breached the employment agreement. This breach can be explicit, such as
violating specific terms of the contract, or implicit, involving actions that fundamentally

undermine the working relationship or expected conditions of employment. Employees claiming
constructive dismissal must demonstrate how the employer's actions or omissions created a
situation where they could not reasonably be expected to continue working.
4. Consider "Mutuality" Under the Contract: Employers, in some cases, may have the right to
change certain terms of employment, provided such changes were clearly outlined in the
employment contract. If the contract allows for certain modifications, employees may face an
uphill battle in proving constructive dismissal. Therefore, understanding the nuances of the
employment contract and the degree of mutuality is critical when analyzing the employer’s rights
to change working conditions.
5. Communicate with the Employer: Before resigning, it is often advisable for the employee to
communicate their concerns to the employer formally. This dialogue can be either verbal or
written, but documenting these communications is essential. By addressing issues directly with
the employer, the employee may provide the employer with the opportunity to rectify the matter
before the situation escalates. In some cases, attempting to resolve issues may even strengthen
the employee's claim of constructive dismissal by showing they took reasonable steps to amend
workplace conditions before resigning.
6. Resignation: If the unjust conditions persist and the employee chooses to resign, it is vital to
communicate the resignation clearly. The resignation should outline the reasons for the departure
and how these reasons fit within the context of constructive dismissal. The employee should also
ensure they do not delay their resignation unduly, as prolonged tolerance of adverse conditions
could weaken their legal position. Courts may view delays as acceptance of the changes, thus
compromising the employee’s claim.
7. File a Claim: Once the resignation has occurred, the next step is to file a claim, which may
involve pursuing arbitration under the Employment Standards Act or taking legal action in a
court setting. Timing is essential; employees must be mindful of statutory limitations, which may
restrict the timeframe for bringing forward claims, typically within two years from the date of
resignation.
8. Prepare for Trial or Hearing: If the matter progresses to trial or a hearing, both parties will
undergo a discovery process where evidence will be exchanged. The employee must be ready to
present a cohesive narrative backed by documented evidence to substantiate their claims.
Witness testimonies and expert opinions may also be pertinent, depending on the specific
circumstances of the case.
9. Understanding Remedies: If successful, employees who prove constructive dismissal may be
entitled to various remedies, including compensation for lost wages, damages for emotional
distress, and possibly reinstatement to their former position if deemed appropriate by the court.
It's important to recognize that remedies can vary widely based on the specific facts and
circumstances of each case, and in some instances, a settlement may be preferred to litigation.
The Employer’s Perspective

Employers in Ontario must understand the potential implications of their actions that could
inadvertently lead to constructive dismissal claims. To minimize risks, employers should practice
transparency in communication, ensure any changes to employment terms are well-documented,
and retain legal counsel before making significant alterations in an employee's compensation or
conditions of employment. Proactively having policies in place for addressing employee
grievances can not only prevent constructive dismissal claims but can also enhance
organizational culture and employee satisfaction.
In Ontario
Constructive dismissal is a nuanced legal concept that can have significant implications for both
employees and employers in Ontario. The process for proving constructive dismissal involves
meticulous documentation, understanding one’s rights, and navigating legal complexities. For
employees, clarity about the path to proving constructive dismissal is critical, enabling better-
informed decisions about resignation and subsequent legal action. For employers, fostering a
respectful employment relationship can prevent misunderstandings that may culminate in
constructive dismissal claims. In the end, productive communication and a commitment to fair
practices benefit all parties involved, contributing to a healthier workplace environment.

37. how Ontario courts treat delayed claims of constructive dismissal.
Constructive dismissal is a pivotal area of employment law, particularly in Ontario, where it
encompasses situations in which an employee resigns due to their employer's significant
impairments or alterations to the terms of their employment. Particularly delicate in this legal
landscape is the issue of delayed claims of constructive dismissal. When an employee believes
that they have been constructively dismissed, the timing of their claim can have substantial
implications. Ontario courts have developed a framework for analyzing delayed claims, taking
into account various factors that inform their decisions.
Understanding Constructive Dismissal
To establish a basis for constructive dismissal, the employee must demonstrate that the
employer's actions amounted to a breach of the employment contract. This can involve
significant changes to salary, job responsibilities, or working conditions that fundamentally alter
the employee's role and make it untenable for them to continue in their position. Once the
employee resigns, they carry the burden of proving that they were forced to leave due to the
employer’s conduct.
The Concept of Delay
A key aspect in handling constructive dismissal claims revolves around delay. In Ontario, the
courts are generally not predisposed to accept delayed claims without scrutiny. One of the
primary reasons for this is the legal principle that an employee who has experienced changes to
their employment conditions must act reasonably and expediently upon becoming aware of those
changes. Delays in addressing grievances—whether through complaints to the employer or
initiating legal proceedings—can serve to complicate or undermine a constructive dismissal
claim.

Legal Framework and Statutory Limitations
When it comes to pursuing a claim of constructive dismissal, Ontario courts operate under
specific legal frameworks. While there is no explicit statute outlining the specific timeframes for
bringing forward constructive dismissal claims, the general principle observed in Canada is that
employees have two years from the date of resignation to file a claim. This limitation applies in
cases where an employee seeks damages through the courts.
Failing to act within this period can result in the claim being barred, a situation particularly
common when an employee remains silent about an adverse change for an extended time. The
courts often interpret such inaction as either acceptance of the changed conditions or a waiver of
the right to pursue a claim.
Factors Influencing Court Decisions
When adjudicating delayed claims of constructive dismissal, Ontario courts consider several
pivotal factors:
1. Nature of the Employment Changes: The severity and nature of the changes to the
employment conditions are often assessed. If the employer has made substantial alterations that
significantly affected the employee's role and wellbeing, courts may be more inclined to consider
the delay on a case-by-case basis.
2. Employee’s Awareness and Response: Courts will evaluate when the employee became aware
of the changes and how quickly they responded. Prompt action, such as raising concerns with the
employer or documenting the issues, can support the claim. Conversely, prolonged toleration of
adverse changes may signal acceptance.
3. Employer's Duty to Warn: In some cases, courts may consider an employer's responsibility to
inform the employee of their rights. If an employer has a duty to notify employees of their ability
to contest changes or the proceedings, failure to do so can impact the timing and nature of
claims.
4. Reasonable Delay: Employees must show that their delay in taking action was reasonable
under the circumstances. For instance, if the individual was making efforts to resolve an issue
internally or had to deal with significant personal circumstances, courts might find the delay
justifiable.
5. Prejudice to the Employer: Courts also consider whether there has been any prejudice to the
employer due to the delay. If significant time has passed, causing challenges in terms of evidence
or witness reliability, that may weigh against the employee's claim.
Case Law Illustrating Delayed Claims

Several court decisions have illuminated the handling of delayed constructive dismissal claims in
Ontario. A notable case involved an employee who resigned after a series of changes led to
dissatisfaction and frustration. The employee, however, delayed for nearly a year before seeking
legal recourse. The Ontario court ultimately dismissed the claim, pointing out that the
employee’s lengthy inaction suggested acceptance of the new conditions, therefore, absolving the
employer of liability.
In contrast, there are instances where courts have taken a sympathetic view of delayed claims. In
one case, the employee was faced with a substantial salary reduction as a result of the company
restructuring. Though they delayed filing a claim for several months while trying to negotiate a
return to their previous terms, the court found that the complexity of the situation warranted a
closer examination of the facts. The court ultimately ruled in favor of the employee, emphasizing
that the employer had a responsibility to foster a dialogue about the changes.
Practical Implications for Employees
For employees contemplating a claim of constructive dismissal, understanding the implications
of delay is crucial. Firstly, prompt action is paramount. This can involve addressing workplace
issues with management, documenting changes, consulting legal counsel, and pursuing claims
immediately after resigning. Employees should avoid accepting unfavorable conditions for
extended periods, as doing so can undermine their claim and signal acquiescence to the new
terms.
Employer Considerations
From the employer's perspective, awareness of the potential legal ramifications of delayed
constructive dismissal claims is essential. Employers should aim to maintain clear
communication with employees about changes in working conditions. This includes not only
communicating the rationale for any changes but also ensuring that employees feel empowered
to voice their concerns. Proactive engagement can prevent misunderstandings and develop a
culture that encourages employees to address grievances as they arise.
In Ontario
The treatment of delayed claims for constructive dismissal in Ontario courts underscores the
importance of expedient action and clear communication in the employment relationship.
Employees must navigate this complex legal landscape with a clear understanding of their rights
and not hesitate to seek redress in a timely manner. Employers, in turn, should foster an open
dialogue about changes and take proactive steps to address employees’ concerns before they
escalate into legal disputes. Ultimately, promoting an environment of mutual respect and
understanding can mitigate the risks associated with constructive dismissal claims, benefiting
both parties in the long run. By recognizing the complexities of timing in employment claims, all
stakeholders can work towards fair resolutions that uphold the interests of employees while
maintaining compliance with employment laws.

38. whether a toxic work environment constitutes constructive dismissal.

In the realm of employment law, the concept of constructive dismissal often arises in discussions
about employees who resign due to intolerable conditions fostered by their employers. One
particularly critical context for evaluating constructive dismissal is the presence of a toxic work
environment. A toxic workplace can create significant stress, reduce job satisfaction, and lead to
severe emotional strain for employees, potentially giving rise to a claim for constructive
dismissal. However, proving that a toxic work environment constitutes constructive dismissal
involves several legal nuances and complexities.
Understanding Constructive Dismissal
Constructive dismissal occurs when an employee believes they have been forced to resign
because of fundamental and detrimental changes to their employment conditions. Rather than
being terminated outright, the employee resigns in response to the employer’s unjust actions or
behavior, effectively treating their working conditions as a breach of the employment contract.
The essential legal premise behind constructive dismissal is that an employer has a duty to
uphold the terms of the employment agreement, ensuring that employees can work under fair and
reasonable conditions. A toxic work environment can manifest in various ways, including
harassment, discrimination, excessive workload, lack of support, unreasonable demands, and
pervasive negativity, all of which can infringe upon the employee’s right to a healthy workplace.
Defining a Toxic Work Environment
A toxic work environment is characterized by behaviors and conditions that create a hostile
atmosphere for employees. This can include bullying, unethical practices, favoritism, lack of
communication, and pervasive negativity or hostility among colleagues. In many cases, these
attributes lead to feelings of distress, anxiety, and demoralization for employees. Importantly,
such an environment can be created or tolerated by management, thus leading to a breakdown of
trust in the employer-employee relationship.
The psychological toll of a toxic environment cannot be overstated. Employees who are
subjected to such conditions often experience diminished job satisfaction, reduced motivation,
and declining mental health. However, from a legal standpoint, determining whether these
factors constitute grounds for constructive dismissal is far more complex than simply labeling a
workplace as “toxic.”
Legal Precedents and Considerations
In Ontario, the legal determination of whether a toxic work environment constitutes constructive
dismissal requires careful examination of the specific circumstances surrounding the case.
Ontario courts analyze various factors when evaluating claims of constructive dismissal,
especially in cases involving allegations of a toxic environment.
1. Nature and Severity of the Toxic Conditions: One of the primary considerations is whether the
specific aspects of the toxic work environment constitute a material change in the employment
contract. Courts look at the severity of the behavior and the consistent nature of the hostile

conditions. For example, incidents of harassment or bullying that occur regularly over time can
indicate a serious breakdown in the employer-employee relationship, potentially justifying a
constructive dismissal claim.
2. Employee Response: Courts assess how the employee reacted to the toxic environment before
resigning. Did the employee raise their concerns with management? Did they seek modifications
to their working conditions? Failing to address grievances or allowing the situation to persist can
weaken a constructive dismissal claim, as employers may argue that the employee accepted the
toxic conditions through inaction.
3. Employer's Duty and Response: The employer's awareness of the toxic conditions and their
response also play a significant role in legal determinations. If an employer is aware of the
hostile environment but fails to take appropriate corrective action, this can strengthen the
employee's case for constructive dismissal. On the other hand, if the employer has made
reasonable efforts to address concerns, this could negate the employee's claim.
4. Impact on the Employee: Courts often consider how the environment has affected the
employee’s mental and emotional well-being. Evidence that demonstrates significant distress,
such as medical records, witness testimonies, or reports from workplace health professionals, can
help substantiate claims of a toxic environment contributing to the employee's resignation.
Case Law Examples
Several notable cases have explored the intersection of toxic work environments and constructive
dismissal. For instance, in the case of Keddy v. City of Toronto, an employee experienced
harassment and bullying by a manager that created a hostile workplace atmosphere. The Ontario
Superior Court found that the cumulative effect of the toxic conditions constituted constructive
dismissal, ruling that the employee had no choice but to resign.
Conversely, in Baker v. 3000513 Canada Inc., the court dismissed the claim when the employee
was unable to present clear evidence of toxic behavior or demonstrate that the alleged toxicity
affected their work conditions significantly. This case illustrates the necessity for employees to
substantiate their claims with concrete evidence of the environment’s impact.
Building a Case for Constructive Dismissal
For employees who believe they are working in a toxic environment that may lead to
constructive dismissal, a structured approach can strengthen their case. Some essential steps
include:
1. Documenting Incidents: Keeping a detailed record of specific incidents that contribute to the
toxic atmosphere is crucial. This includes documenting dates, times, conversations, and
descriptions of behavior exhibited by colleagues or supervisors. Such records can serve as
evidence when pursuing a claim.

2. Raising Concerns: Employees should communicate their concerns through proper channels
within the organization. This can involve reporting issues to human resources, submitting a
formal grievance, or discussing matters with management. Documentation of these
communications can be pivotal in establishing that the employee sought to address the issues
before resigning.
3. Seeking Professional Help: If the toxic environment affects mental health, seeking counseling
or psychological support might be beneficial. Professional documentation can lend credibility to
the employee's claims regarding the emotional toll of the workplace.
4. Legal Consultation: Engaging with an employment lawyer can clarify legal rights and
obligations. A legal professional can help assess the specific circumstances, provide guidance on
potential claims, and strategize the best approach moving forward.
In Ontario
The relationship between a toxic work environment and constructive dismissal is intricate and
nuanced. While a toxic atmosphere can significantly impact an employee’s ability to perform
their duties and overall job satisfaction, proving constructive dismissal on these grounds requires
careful legal consideration. Employees must meticulously document their experiences, convey
their grievances, and seek legal advice to navigate the complexities of constructive dismissal
claims successfully. Employers, for their part, must foster healthy workplace environments and
actively address any behaviors that may lead to claims of toxicity, thereby promoting a more
positive and equitable workplace culture. Ultimately, understanding the legal implications of
toxic work environments can lead to better outcomes for both employees and employers,
ensuring fairness and justice within the realm of employment.

39. whether resignation after harassment can trigger constructive dismissal.
In the employment law landscape, the term "constructive dismissal" refers to a scenario where an
employee resigns due to intolerable work conditions or breaches of the employment contract by
the employer. A particularly troubling scenario arises when an employee resigns after
experiencing harassment in the workplace. The question then becomes: can resignation after
harassment trigger a claim for constructive dismissal? The answer is nuanced and depends on
several legal and factual considerations.
Understanding Constructive Dismissal
Constructive dismissal occurs when an employee feels they have no choice but to resign due to
significant changes in their employment conditions imposed by the employer, often in relation to
the employee's rights and expectations outlined in their contract. Unlike wrongful dismissal,
which involves a straightforward termination of employment, constructive dismissal is about the
implicit resignation due to the employer’s breach of duty, usually tied to working conditions that
are deemed unreasonable or hostile.
The Nature of Harassment

Harassment can take many forms, including verbal abuse, bullying, unwanted advances, or
discriminatory comments targeting an employee’s personal characteristics such as race, gender,
or sexual orientation. The legal framework around harassment often intersects with workplace
safety laws and anti-discrimination statutes. In many jurisdictions, employers have a legal
obligation to provide a safe and harassment-free environment. When an employer fails to meet
this obligation, it can lead to serious repercussions, including legal liability.
The impact of harassment on an employee can be profound and multifaceted. Victims often
experience significant emotional distress, anxiety, and a diminished sense of self-worth. Over
time, these experiences can create a workplace so unbearable that an employee feels compelled
to resign. Therefore, if resignation follows harassment, it can arguably form the basis for a
constructive dismissal claim.
The Legal Framework Surrounding Constructive Dismissal and Harassment
In Ontario, like many jurisdictions, the legal basis for claiming constructive dismissal is
grounded in the common law principles of employment. For an employee to succeed in a claim
of constructive dismissal based on harassment, they typically must demonstrate the following
elements:
1. Existence of Harassment: The employee must show that they experienced harassment that
created an intolerable work environment. This often requires providing evidence of the
harassment, such as witness statements, emails, or any documentation of the incidents.
2. Employer’s Awareness and Failure to Act: If the employer was aware of the harassment and
failed to take appropriate corrective action, this can strengthen the employee’s case. Employers
are generally expected to implement and enforce policies that address harassment effectively and
ensure that employees feel safe reporting incidents without fear of retaliation.
3. Employee's Response: Courts will scrutinize what actions the employee took in response to
the harassment. Did the employee report the harassment to management, human resources, or
another appropriate body? Did they document their experiences? An employee's failure to follow
the proper channels for reporting harassment might negatively impact their constructive
dismissal claim, as employers may argue that they were not given the opportunity to remediate
the situation.
4. Intolerability of Conditions: Finally, the employee must convincingly argue that the hostile
work environment was so unbearable that resignation was the only reasonable response. This
often involves an analysis of the severity and frequency of the harassment and its impact on the
employee’s mental and emotional health.
Case Law and Precedents
Several notable cases have addressed the issue of constructive dismissal following harassment.
Courts will often analyze the specific facts of these cases to determine if they meet the criteria
for constructive dismissal.

For example, in the case of Johnson v. Capital Ford Lincoln Inc., the employee resigned after
facing continuous harassment from a manager. The Ontario Superior Court found that the
employer had failed to take steps to address the harassment despite being made aware of the
situation. The court ruled in favor of the employee, determining that the harassment had created
conditions that amounted to constructive dismissal.
Conversely, in other cases, courts have found that employees did not sufficiently document their
complaints or give employers the opportunity to rectify the situation. In such instances, the
courts dismissed the constructive dismissal claims on the grounds that the employees had not
followed appropriate procedures, thus reducing the employer’s liability.
The Impact of Resignation After Harassment
Resigning after experiencing harassment can trigger constructive dismissal, but the success of
such claims often hinges on the quality and quantity of evidence presented. Employees faced
with harassment should take immediate action to preserve their rights and strengthen their
potential claims.
1. Documentation: Keeping detailed records of incidents, including dates, times, witnesses, and
the nature of the harassment, is crucial. Written documentation can significantly bolster an
employee’s case if they resign and decide to pursue a legal claim.
2. Reporting the Harassment: Employees should report harassment to a supervisor, human
resources, or another designated individual within the organization. Employers are required to
investigate claims of harassment, and failure to report may limit an employee’s ability to prove
that conditions were intolerable.
3. Seeking Professional Advice: It can be beneficial for employees experiencing harassment to
consult with legal professionals who specialize in employment law. A qualified lawyer can
provide guidance regarding rights and potential claims, as well as strategies for addressing the
situation within the workplace.
Navigating the Legal Landscape
The legal landscape surrounding constructive dismissal following harassment can be complex.
Employees must navigate a series of steps that include documentation, reporting, potential
mediation, and litigation if necessary. Furthermore, different legal frameworks exist across
jurisdictions, creating potential variances in outcomes.
Employers, on their part, must establish and consistently enforce strong anti-harassment policies,
ensuring that employees feel safe and supported in reporting misconduct. Proactive engagement
can help build a workplace culture where harassment is not tolerated, leading to happier
employees and mitigating the risks associated with constructive dismissal claims.
In Ontario

Resigning after harassment can trigger constructive dismissal, but proving such a claim requires
careful navigation and substantial evidence. The interplay between harassment, workplace
conditions, and employee actions heavily influences the outcome of legal claims. Employees
facing harassment should act swiftly to document their experiences, report issues to
management, and seek professional guidance. Employers, meanwhile, should prioritize creating
supportive and respectful workplaces, thereby reducing the likelihood of harassment and
fostering a culture of trust. Ultimately, understanding the legal implications of harassment and
resignation is vital for both employees and employers as they navigate the intricacies of
constructive dismissal.

40. the burden of proof in Ontario constructive dismissal cases.
The concept of constructive dismissal plays a critical role in employment law in Ontario, where
employees seek to terminate their employment due to intolerable working conditions. Unlike
traditional wrongful dismissal, which focuses on instances of direct termination by the employer,
constructive dismissal involves situations where an employee resigns in response to fundamental
changes in the terms of their employment. At the heart of constructive dismissal cases lies the
concept of the burden of proof—an essential legal principle that determines who is responsible
for presenting evidence in a case. Understanding the burden of proof in Ontario constructive
dismissal cases is crucial for both employees and employers navigating these complex legal
waters.
Defining Constructive Dismissal
Before delving into the burden of proof, it is essential to understand what constitutes constructive
dismissal. In Ontario, a constructive dismissal occurs when an employer's actions or omissions
create a hostile or untenable work environment, leading an employee to resign. This could
involve a wide range of issues, including significant changes in job responsibilities, reduction in
pay, harassment, lack of support, or other actions that violate the fundamental terms of the
employment contract.
For a claim of constructive dismissal to be successful, the employee must demonstrate that the
employer’s conduct was sufficiently severe to justify a resignation. Moreover, the employee must
show that they attempted to address these issues or sought remediation from the employer before
deciding to resign, further complicating the legal terrain.
The Burden of Proof in Constructive Dismissal Cases
In a legal context, the burden of proof refers to the obligation of a party to present sufficient
evidence to prove their claims. In Ontario constructive dismissal cases, the burden of proof rests
primarily on the employee claiming constructive dismissal. This means that the employee must
establish, on a balance of probabilities, that the circumstances surrounding their resignation were
indeed a response to unjust or intolerable working conditions caused by the employer.
1. Proving the Existence of a Hostile Work Environment: To meet the burden of proof, the
employee must demonstrate that the employer's actions created a hostile work environment. This

can involve providing evidence of specific incidents that contributed to this environment. Such
evidence may include documentation of complaints, email correspondence, witness statements,
or records of meetings where the issues were discussed. Employees should aim to show a pattern
of behavior rather than isolated incidents, as cumulative evidence tends to carry more weight in
legal proceedings.
2. Showing a Breach of Contract: In proving constructive dismissal, the employee must also
show that the employer breached the employment contract, which could involve changes that
fundamentally alter the nature of the job or terms of employment. For instance, if an employee is
demoted without cause or subjected to a significant pay cut, they need to clearly articulate how
these changes constitute a breach that justifies their resignation.
3. Causation: Furthermore, the employee has to establish a causal link between their resignation
and the employer’s conduct. This requires demonstrating that the conditions created by the
employer left no reasonable option but to resign. Courts will often scrutinize whether the
employee made reasonable attempts to address their grievances before resigning. If an employee
fails to report issues to management or does not seek remediation, it may weaken their case
because it suggests a lack of seriousness about resolving the problems.
Legal Standards and Documentation
The legal standard for evidentiary burden in constructive dismissal claims is often described as
“the balance of probabilities.” This means that the employee needs only to convince the court
that it is more likely than not that their claims are valid. However, this does not minimize the
importance of solid evidence. Employees who are prepared to substantiate their claims with
robust documentation stand a better chance of success.
1. Documentation: Keeping detailed records is essential. Employees should maintain a structured
log of events, including dates, times, descriptions of incidents, and any communications with the
employer regarding their grievances. This kind of clear documentation can provide crucial
evidence to support their claims and satisfy the necessary burden of proof.
2. Witness Testimonies: In addition to personal records, gathering statements from colleagues or
witnesses who can corroborate the employee's experiences can also significantly bolster a case.
Witnesses can provide valuable context and add credibility to the claims of a hostile work
environment.
The Employer's Defense
Once an employee establishes the burden of proof, the onus may then shift to the employer.
While the employee must initially present enough evidence to establish their case, the employer
may have the opportunity to defend against the claim. This can involve demonstrating that:
1. The conditions were not intolerable: The employer might argue that the employee's perception
of the work environment is subjective and that the conditions fall short of constituting
constructive dismissal.

2. Reasonable measures were taken: If the employer addressed complaints or concerns
appropriately, they might argue that they fulfilled their obligation to maintain a safe and healthy
work environment.
3. The employee failed to mitgate damages: An employer may contend that the employee did not
take reasonable steps to resolve the issues or did not follow proper reporting procedures. If an
employee resigns without providing the employer with an opportunity to address the problematic
situation, it can undermine their constructive dismissal claim.
The Role of Courts and Adjudicators
Ontario’s courts play a key role in determining whether constructive dismissal claims have merit.
Judges assess the evidence presented by both parties to evaluate whether the employee has met
their burden of proof. They will look for a balance of factors that contribute to the claim, taking
into account the context of the workplace dynamics, the nature of the employment contract, and
the behavior exhibited by both parties.
Several cases have shaped the landscape of constructive dismissal in Ontario. Courts have ruled
in favor of employees in situations where there was clear evidence of hostile work environments,
supported by documentation and witness testimony. Conversely, cases where employees failed to
adequately document their experiences or address grievances with management have often
resulted in dismissals.
In Ontario
The burden of proof in Ontario constructive dismissal cases primarily lies with the employee
seeking redress. Successfully navigating this complex legal terrain requires careful
documentation, clear evidence of a hostile work environment, and a demonstration of the
unreasonableness of conditions leading to resignation. Employees must also approach the
situation thoughtfully, addressing grievances with their employer before resigning, in order to
strengthen their claims. Conversely, employers need to maintain strong policies and practices to
ensure a respectful workplace, as failing to do so can lead to complicated legal challenges and
potential liability. Understanding the burden of proof is essential for both employees and
employers, as it shapes the outcomes of constructive dismissal claims and underscores the
importance of a just and equitable workplace.

Employer Defenses and Legal Strategies
41. how employers defend against sexual harassment claims in Ontario.
Sexual harassment in the workplace is a significant issue that can lead to serious legal
consequences for employers in Ontario. As understanding of sexual harassment has evolved, so
too have the obligations imposed on employers to create and maintain a safe and respectful
working environment. When faced with claims of sexual harassment, employers may feel
overwhelmed by the potential repercussions; however, it is crucial for them to mount a defensive
strategy that not only addresses these claims but also seeks to promote a positive workplace
culture. This article explores common defenses employed by employers in Ontario against sexual

harassment claims, emphasizing the importance of preparation, policy development, and
proactive measures.
Understanding Sexual Harassment in Ontario
In Ontario, the legal framework around sexual harassment is established by the Ontario Human
Rights Code, which prohibits discrimination and harassment on various grounds, including sex.
Sexual harassment can take many forms, from unwanted sexual advances and inappropriate
comments to more systemic issues involving workplace culture. Under the law, employers have a
duty to prevent and address incidents of sexual harassment to protect their employees.
The Importance of Effective Response and Policies
One of the primary defenses for employers is the implementation of effective harassment policies
and procedures. When faced with an allegation of sexual harassment, an employer that can
demonstrate a commitment to preventing such behavior through comprehensive policies may
find itself in a stronger position during investigations and legal proceedings.
1. Documented Policies: Employers should develop and implement clear anti-harassment
policies that outline unacceptable behaviors, reporting procedures, and penalties for violators.
These policies should be communicated to all employees and reviewed regularly to ensure that
they remain relevant.
2. Training and Education: Providing ongoing training on issues related to sexual harassment is
vital. Employees at all levels should receive education about what constitutes harassment, the
process for reporting incidents, the importance of bystander intervention, and the employer's
commitment to addressing harassment seriously. Training employees helps create a culture of
respect and accountability.
Prompt Investigation and Action
When an employer receives a complaint of sexual harassment, one of the most crucial steps is to
promptly investigate the claim. An effective investigation process not only helps in mitigating
legal liability but also demonstrates to employees that the employer takes allegations seriously.
1. Neutral Investigator: Engaging a neutral third party to conduct investigations can lend
credibility to the process. This individual should be trained in handling harassment claims and
have experience conducting similar investigations. The investigator should be objective and not
affiliated with the parties involved to ensure a fair assessment of the situation.
2. Gather Evidence: During the investigation, employers should focus on collecting as much
relevant evidence as possible. This includes interviews with the complainant, the accused, and
any witnesses, along with relevant documents, emails, or other records. A thorough investigation
helps ensure that the employer fully understands the context and facts surrounding the claim.

3. Confidentiality: Throughout the investigation process, it's critical to maintain the
confidentiality of all parties involved to protect their privacy and encourage open dialogue. This
also helps prevent further retaliation against the complainant and sustains the integrity of the
investigation.
Defenses Against the Claim
When an employer responds to a sexual harassment claim, they may present several potential
defenses, based on the circumstances of the case.
1. Lack of Evidence: Employers can challenge the validity of the claim by emphasizing the
absence of corroborative evidence. If an employee's accusations are not substantiated by
witnesses or supporting documentation, this can weaken the claim against the employer.
2. No Knowledge of Behavior: Employers may assert that they were unaware of the alleged
behavior prior to the complaint and that they had reasonably effective policies in place. If an
employee did not utilize the reporting channels to notify the employer of the harassment, this can
serve as a mitigating factor.
3. No Breach of Policy: An employer can contend that they took all necessary steps to prevent
and address sexual harassment in the workplace, thereby fulfilling their obligations. This
includes having an active prevention program, providing training, and responding appropriately
to past complaints. Demonstrating an overall commitment to a respectful work environment can
bolster the employer's position.
4. Retaliation Claims: Sometimes, employers face retaliatory claims after taking action in
response to harassment claims. Employers can defend themselves by showing that any adverse
employment actions were based on legitimate, non-discriminatory reasons rather than retaliation
for making a harassment complaint.
Engaging in Dialogue and Resolution
Engaging in constructive dialogue with the complainant can also serve as a powerful defense
strategy. Employers may choose to address the situation directly by engaging with the employee
and seeking resolution, which can mitigate the impact of the allegations. Depending on the
context of the claims, this might include mediation or facilitated discussions to agree on
appropriate steps moving forward.
Employers can also emphasize that they fully support the complainant's rights while addressing
the conduct of any alleged harassers. Resolving the matter efficiently can demonstrate the
employer's commitment to fostering a safe and respectful workplace and may eliminate the need
for legal action.
Reinforcing a Supportive Workplace Culture

A strong defense against sexual harassment claims is also rooted in fostering a positive
workplace culture where employees feel safe and respected. Employers should prioritize creating
an environment where employees can voice concerns without fear of retaliation. Demonstrating
this commitment can go a long way in preventing legal claims and addressing them effectively
should they arise.
1. Open Communication Channels: Employers should establish and promote open
communication channels for employees to report grievances. This ensures that employees feel
comfortable coming forward and that their concerns are taken seriously.
2. Leadership Accountability: Creating a culture where everyone, including leadership, is held
accountable for maintaining a respectful workplace is crucial. Employers can model respectful
behavior and actively discourage harassment, thus reinforcing the importance of compliance
across the organization.
In Ontario
In navigating sexual harassment claims in Ontario, employers are faced with both legal
obligations and the imperative to create a safe workplace environment. By developing robust
policies, providing training, conducting thorough investigations, and fostering open
communication, employers can mount a strong defense against harassment claims.
Simultaneously, they can promote a culture where respect and dignity thrive, ultimately
contributing to a more positive and productive work environment for all employees. Employers
who take proactive measures are better positioned to address claims effectively and reduce the
risk of legal repercussions, ensuring that they fulfill their obligations to protect their workforce
from harassment and discrimination.

42. whether workplace investigations can mitigate employer liability.
Workplace investigations are a critical aspect of modern employment practices, especially as the
workforce becomes increasingly diverse and more regulations are placed on employers to
maintain safe and respectful environments. When allegations arise regarding
misconduct—whether it be harassment, discrimination, breaches of policy, or other forms of
employee misconduct—how an employer responds can significantly impact its legal liability.
The effectiveness of a workplace investigation in mitigating employer liability is multifaceted
and contingent on various factors, including the thoroughness of the investigation, compliance
with legal and procedural standards, and the employer's proactive approach to issues that arise.
The Legal Landscape
In many jurisdictions, including Canada and the United States, employers have a legal obligation
to provide a safe work environment free from harassment and discrimination. Failure to address
complaints or allegations adequately can lead to significant legal exposure, including lawsuits,
financial penalties, and damage to the organization's reputation.
By instituting a workplace investigation in response to a complaint, employers take a proactive
step that can potentially limit their liability if the investigation is conducted properly. Courts and

tribunals often view prompt action as a sign of good faith effort to resolve issues and prevent
further misconduct. Thus, the mere act of investigating can, in many cases, serve as a first line of
defense against claims of negligence in managing workplace behavior.
Establishing a Comprehensive Investigation Protocol
To maximize the benefits of workplace investigations, companies must establish comprehensive
protocols. An effective investigation protocol typically includes several key elements:
1. Clear Policies and Procedures: Employers should have documented policies outlining how
investigations will be conducted when allegations arise. These policies should detail the
reporting structures, the types of behaviors that trigger investigations, and the responsibilities of
all parties involved.
2. Training for Investigators: Those tasked with conducting workplace investigations must
receive adequate training on relevant laws, investigation techniques, and sensitivity issues.
Proper training ensures that investigations are conducted impartially and professionally.
3. Confidentiality: Maintaining confidentiality throughout the investigation process is essential.
This not only helps protect the reputations of all parties involved but also encourages others to
come forward with information without fear of retaliation.
4. Thorough and Timely Investigations: Investigations must be conducted promptly and
comprehensively. Delayed or superficial investigations can lead to claims of negligence and may
exacerbate workplace tensions.
The Role of Investigations in Mitigating Liability
Conducting a thorough workplace investigation can mitigate employer liability in several
significant ways:
1. Demonstrating Due Diligence: Employers that take immediate action to investigate claims
demonstrate due diligence, which may serve as a defense against legal claims. Courts often view
due diligence favorably and may lessen employer liability when it is evident that steps were
taken to address complaints appropriately.
2. Gathering Evidence: A thorough investigation allows for the collection of relevant evidence
that can clarify the situation. The insights gained can inform decisions on how to respond to
allegations, whether in the form of disciplinary action or other measures. Organizations that
effectively document their investigation process can present evidence of their response if claims
escalate to legal action.
3. Identifying Systemic Issues: Investigations can help identify broader organizational issues that
need addressing, such as cultural problems, inadequate policies, or failure to provide sufficient
training. By taking corrective action based on investigation findings, employers can mitigate the

risk of future legal claims, showing that they are committed to creating a positive workplace
culture.
4. Employee Morale and Trust: A transparent and effective investigation process can boost
employee morale by demonstrating that the organization takes employee concerns seriously.
Employees are less likely to pursue legal action if they feel that their complaints are treated with
the gravity they deserve. This proactive stance builds trust and loyalty among employees and
reduces the likelihood of escalating disputes.
Challenges and Considerations
While workplace investigations can significantly mitigate employer liability, several challenges
may arise that could undermine this effectiveness:
1. Poorly Conducted Investigations: If an investigation is perceived as biased, incomplete, or
negligent, it can result in even greater liability for the employer. A lack of impartiality, failure to
interview relevant witnesses, or inadequately addressing findings can all lead to complications.
2. Retaliation Concerns: Employees may fear retaliation for participating in an investigation or
for reporting misconduct. Employers must explicitly communicate anti-retaliation policies to
mitigate this concern and encourage employees to come forward.
3. Emotional Toll on Employees: Investigations can be stressful for those involved, particularly
the complainant and the accused. Employers need to consider the emotional and psychological
ramifications for employees, taking care to provide support throughout the process.
4. Legal Recommendations: Employers must also be cautious as to how the findings of an
investigation are communicated and acted upon. Depending on the findings, disciplinary actions
may be necessary, and ensuring that these processes are legally defensible is essential.
In Ontario
Workplace investigations are not merely a procedural formality; they are a vital component of
managing employment-related issues and mitigating potential liability. When executed properly,
they serve as a proactive measure to address allegations of misconduct, thereby helping to
insulate employers from legal risks.
However, for investigations to effectively mitigate liability, they must be thorough, impartial, and
compliant with legal standards. An organization that establishes robust investigation protocols
shows diligence, builds trust among employees, and creates a culture of accountability.
Therefore, while investigation protocols may require upfront investment in training and
resources, the potential for liability reduction, enhanced employee morale, and the cultivation of
a respectful workplace culture makes it a wise and necessary endeavor for any organization. By
prioritizing effective workplace investigations, employers not only protect their legal interests
but also foster an environment conducive to the well-being and productivity of their workforce.

43. how mitigation (finding new employment) reduces damages in wrongful dismissal.
Wrongful dismissal, a nuanced aspect of employment law, occurs when an employee is
terminated from their job without just cause or without appropriate notice. When an employee
believes they have been wrongfully dismissed, they may seek remedies in the form of damages,
including lost wages, benefits, and other compensation. However, an essential aspect of wrongful
dismissal cases is the principle of mitigation, which refers to the obligation of the dismissed
employee to take reasonable steps to find new employment after being terminated.
Understanding how mitigation affects potential damages in wrongful dismissal cases is crucial
for both employees and employers as it plays a significant role in determining the appropriate
compensation and the overall outcome of legal proceedings.
The Concept of Mitigation
At its core, mitigation refers to the duty of an employee who has been wrongfully dismissed to
minimize their losses by actively seeking new employment. This legal obligation is grounded in
the principle that individuals have a responsibility to reduce the damages they suffer as a result
of wrongful actions taken against them. Courts and legal systems generally expect that an
employee will engage in reasonable efforts to find new work, thereby limiting the financial
impact of their dismissal.
Mitigation is a crucial concept in wrongful dismissal cases because it can significantly reduce the
damages that an employee may claim. If an employee does not take reasonable steps to find a
new job and continues to claim lost wages from their previous employer, their claim for damages
may be reduced or even denied entirely. The rationale behind this principle is fundamentally fair:
the purpose of damages is to restore the employee to a position they would have occupied had
the wrongful dismissal not occurred, and not to provide an opportunity for unjust enrichment.
Reasonable Steps Toward Mitigation
Determining what constitutes "reasonable steps" in the context of mitigation often hinges on
various factors, including the employee’s qualifications, experience, and the current labor market
conditions. While the exact expectations may vary from case to case, some common practices
can help define what actions would typically be considered reasonable for employees following a
wrongful dismissal:
1. Active Job Search: A dismissed employee should actively look for new employment. This
may involve applying for jobs relevant to their skills, attending job fairs, networking, and
utilizing online job portals.
2. Skill Development and Training: Employees may also seek to enhance their employability by
enrolling in training programs or courses relevant to their field. Investing time in skill
development can increase an individual’s chances of finding new employment and may signal to
the court that they are making genuine efforts to mitigate their losses.
3. Accepting Comparable Employment: Accepting a new position that is reasonably comparable
in terms of salary and responsibilities is also a key aspect of mitigation. If an employee is offered

a job that pays less than their previous position, they may still be seen as fulfilling their duty to
mitigate if they accept it, provided that they can demonstrate their job search efforts.
4. Documentation of Job Search Activities: Keeping records of job applications, interviews, and
relevant communications can help demonstrate to a court that the employee has made legitimate
efforts to mitigate their damages. This documentation serves as a compelling narrative that
substantiates their claims.
The Impact of Failure to Mitigate
When an employee fails to mitigate their damages, it can have serious implications for their
wrongful dismissal claim. The employer may argue that the employee’s failure to seek new
employment should reduce or eliminate their recovery of lost wages and benefits. Courts often
take the following factors into account when evaluating whether an employee has fulfilled their
duty to mitigate:
1. Reasonableness of Efforts: Courts will assess whether the actions taken by the employee to
find new employment were reasonable based on their circumstances. This includes evaluating
the time frame of their job search and their willingness to consider various types of employment.
2. Labor Market Conditions: External factors, such as a lack of job opportunities in the
employee’s field, may be considered when determining whether the employee’s efforts to find
new employment were reasonable. If the labor market is particularly challenging, courts may
take a more lenient view of the employee’s job search efforts.
3. Skill Relevance and Job Comparability: Employees have a duty to seek employment that
closely matches their pre-dismissal position but may be expected to show flexibility in their job
search. This might mean considering roles in adjacent fields or in industries where their skills
may be transferrable.
4. Period of Unemployment: The length of time an employee remains unemployed will also be
examined. If a significant amount of time passes without reasonable job search efforts, it
weakens their claim for damages.
Legal Interpretation and Precedent
Various legal precedents illustrate the principle of mitigation within wrongful dismissal cases.
Courts often assess whether an employee acted in good faith in their efforts to find new
employment, and a lack of genuine effort can undermine their claim for damages. For instance, if
a court finds that an employee failed to apply for jobs that could have reasonably compensated
them in a comparable manner to their previous position, it may reduce the damages awarded to
reflect this failure to mitigate.
Moreover, legal decisions have consistently reinforced the idea that employees must show they
have not only conducted a job search but have done so vigorously and diligently. The burden of
proof lies with the employee to demonstrate that their efforts were sufficient.

In Ontario
Mitigation plays a pivotal role in the realm of wrongful dismissal claims, significantly impacting
the potential damages an employee might recover following their termination. By actively
seeking new employment, documenting their efforts, and demonstrating a willingness to accept
reasonable positions, employees fulfill their obligation to mitigate losses.
Employers need to understand that when an employee is wrongfully dismissed, the principle of
mitigation can profoundly influence the outcome of legal proceedings. Missteps in the
employee’s duty to mitigate—such as failure to apply for jobs or lack of reasonable effort—can
result in a significant reduction of damages awarded, leading to a more equitable resolution for
all parties involved.
Ultimately, the requirement for mitigation serves both the interests of fairness and the economy,
encouraging individuals to regain their footing in the workforce as swiftly as possible while
protecting employers from excessive claims of damages. In navigating wrongful dismissal
claims, the interplay between an employee's obligations and their rights remains a crucial area of
focus, highlighting the importance of proactive engagement on both sides.
44. how employment contracts can limit wrongful dismissal claims.
Employment contracts serve as foundational documents that outline the relationship between an
employer and an employee, detailing rights, responsibilities, and expectations. One vital aspect
of these contracts is their potential to limit wrongful dismissal claims. A well-structured
employment contract can provide clarity and legal protections for both parties, ensuring that the
termination process aligns with agreed terms and mitigating the risk of claims that might arise
from misunderstandings or disputes. Understanding how employment contracts can limit
wrongful dismissal claims requires an examination of the legal framework, key contractual
provisions, and the significance of clarity and transparency in employment relationships.
Understanding Wrongful Dismissal
Wrongful dismissal occurs when an employer terminates an employee in violation of the terms
set forth in their employment contract or without just cause, in the absence of adequate notice or
severance. Employees who believe they have been wrongfully dismissed may seek legal
remedies, which can encompass damages for lost wages, benefits, and other compensatory
claims. Therefore, both employers and employees should recognize that the contractual language
can greatly influence the outcome of disputes regarding termination.
The importance of a thorough employment contract cannot be overstated. An absence of clear
contractual terms can lead to ambiguity about the conditions under which an employee may be
dismissed, potentially resulting in costly legal battles. Therefore, incorporating specific
provisions that address termination and wrongful dismissal claims is crucial for managing
expectations and liabilities.
Key Provisions to Limit Wrongful Dismissal Claims

1. Termination Clauses: A well-drafted termination clause is one of the primary components of
an employment contract that limits wrongful dismissal claims. This clause can specify the
grounds for termination—both for cause and without cause—and detail the notice period or
severance pay that an employee is entitled to in case of termination without cause. By expressly
defining the circumstances under which termination is permissible and the process to be
followed, employers can protect themselves against ambiguities that could later be interpreted
unfavorably in court.
2. Probationary Periods: Incorporating a probationary period can serve to limit claims for
wrongful dismissal. During this timeframe, which typically lasts from three to six months,
employers have the right to evaluate an employee's fit within the organization without adhering
to the same stringent requirements for termination as they would for a permanent employee.
Clear terms related to probation can provide both parties with the understanding that termination
during this period does not constitute wrongful dismissal, as the employee is still undergoing an
assessment phase.
3. Just Cause Definitions: Another effective approach is to include a clear definition of what
constitutes “just cause” for termination in the employment contract. Expounding on behaviors
that warrant immediate dismissal, such as theft, gross misconduct, or serious breaches of
workplace policy, creates a framework within which the employee can understand the standards
of conduct expected. If the grounds for dismissal are clearly delineated, it reduces the chances of
claims arising from perceived unfair treatment.
4. Dispute Resolution Clauses: Many employment contracts include alternative dispute
resolution (ADR) clauses, which mandate arbitration or mediation before litigation. By
stipulating that disputes related to termination or wrongful dismissal be resolved through these
channels, employers can limit potential claims and manage costs, while employees can benefit
from a more streamlined process that avoids lengthy court battles.
5. Limitation Periods: Including a clause that specifies a limitation period for bringing wrongful
dismissal claims can also be advantageous for employers. By establishing a timeframe within
which an employee must raise a claim (often aligned with local laws), employers can prevent
indefinite exposure to potential lawsuits, thereby enhancing legal certainty.
The Importance of Clarity and Transparency
An employment contract's effectiveness in limiting wrongful dismissal claims hinges not only on
its specific provisions but also on the clarity with which those provisions are articulated.
Contracts that are ambiguous or poorly written can lead to disputes, as different interpretations of
contractual language may arise between employers and employees.
For instance, if a termination clause is vague about the notice period required for dismissal, the
employee may interpret the terms one way while the employer sees them differently. Courts tend
to favor the interpretation that serves the employee in cases of ambiguity, which can undermine

the employer’s objectives. Therefore, employing clear language that leaves little room for
interpretation is vital in limiting potential claims.
Moreover, transparency during the hiring process plays a crucial role. When employers
communicate expectations clearly and provide employees with a copy of the contract to review
before signing, it increases the likelihood that employees will understand their rights and
obligations fully. This understanding can mitigate conflicts at the outset of the employment
relationship.
Employees’ Acceptance of Terms
It is essential that employees not only understand but also voluntarily accept the terms outlined
in their employment contracts. Contracts often include an acknowledgment statement confirming
that the employee has read, understood, and accepts the conditions laid out in the document. This
further solidifies the employer’s position, as an employee cannot later claim ignorance of the
contractual obligations accepted.
Limitations of Employment Contracts in Wrongful Dismissal Claims
While employment contracts can limit wrongful dismissal claims, they are not an absolute shield
against all legal repercussions. Courts may invalidate certain clauses if deemed unfair,
unconscionable, or contrary to public policy. For instance, a contract that attempts to eliminate
severance pay altogether or impose unreasonable conditions for termination may not withstand
legal scrutiny.
Additionally, even with strong contractual protections in place, employers must still follow
relevant labor laws and regulations guiding termination processes. For example, while a contract
may outline the conditions for termination, employers must ensure compliance with any
applicable statutory termination requirements, such as those under employment standards
legislation.
In Ontario
Employment contracts are instrumental in defining the relationship between employers and
employees, particularly concerning wrongful dismissal claims. By including specific provisions
related to termination, just cause, and dispute resolution, employers can significantly limit
potential liabilities while providing clarity for employees about their rights and responsibilities.
Ultimately, a well-crafted employment contract not only protects employers from wrongful
dismissal claims but also fosters a transparent and respectful workplace culture. Employers and
employees who invest time in crafting clear, fair, and comprehensive contracts can minimize
misunderstandings and disputes, ensuring a more harmonious employment relationship. In
navigating the complexities of employment law, having a robust contractual foundation is not
only a strategic legal move but also a vital component of responsible employment practices.

Challenging an Employee’s Failure to Mitigate Damages: A Strategic Approach

In today's dynamic workplace, the relationship between employer and employee is often
complex, especially when it comes to the repercussions of an employee’s actions or inactions.
One area that can lead to conflict and legal ramifications is the concept of "failure to mitigate
damages." This term, commonly used in legal and business contexts, refers to a party's
responsibility to minimize their losses following an incident. When an employee fails to take
reasonable steps to reduce the consequences of their actions that led to a loss, it may be
necessary for employers to challenge this failure for various reasons, including protecting
business interests and ensuring fairness in the workplace.
Understanding the concept of failure to mitigate damages is essential before initiating any
challenge. Essentially, it postulates that if harm has occurred—be it financial, reputational, or
operational—the affected party must take affirmative steps to lessen that hurt. When it comes to
employment matters, this principle becomes particularly salient. For example, if an employee is
terminated and claims wrongful termination, they have a duty to seek new employment to
mitigate the financial impact of their unemployment. If they choose not to, an employer can
challenge their claim by demonstrating that the employee failed in this obligation.
When dealing with a perceived failure to mitigate damages, the first step involves the collection
of relevant facts. Employers should document all occurrences related to the incident, including
timelines, communications, and any actions taken by the employee or the company following the
occurrence. This documentation serves not only to clarify the situation but also to provide
evidence should the dispute escalate into legal action. Employers must maintain an organized file
of communications conducted with the employee regarding the incident, as well as a record of
efforts made to address the situation, including damages incurred.
Next, it is essential to critically assess the actions taken by the employee post-incident. The
employer should analyze whether the employee had the capability and opportunity to mitigate
damages effectively. For instance, did the employee report their failure in a timely manner? Did
they seek assistance or resources from the company that could have helped in reducing damages?
Employers should consider the circumstances surrounding the failure, including factors like job
duties, industry standards, and the support that was available to the employee at the time. A
thorough understanding of these nuances is crucial for building a compelling argument.
Once the facts are gathered and analyzed, the next step involves engaging the employee in a
constructive dialogue. Open communication is critical in these situations. Employers should
extend an opportunity for the employee to explain their actions or lack thereof. This discussion
not only allows the employer to understand the employee's mindset but also helps to foster a
collaborative environment where solutions can be explored. By encouraging transparency,
employers may find out whether there were extenuating circumstances affecting the employee's
ability to act, which could potentially mitigate the perceived failure.
During discussions, it is vital to remain professional and empathetic. Challenging an employee’s
failure can be a sensitive matter, and how an employer approaches the situation can influence the

outcome significantly. Rather than casting blame, focus on mutual problem-solving. This can
lead to the employee realizing the importance of their responsibility, which might prompt them
to accept accountability and engage in corrective actions moving forward. Should the
conversation reveal valid reasons for the employee's failures—for instance, lack of training or
unclear processes—this feedback can be instrumental in preventing similar issues in the future.
If internal discussions do not yield satisfactory results, and the employer believes there is a clear
case for a failure to mitigate damages, it may be necessary to escalate the situation. This could
involve formal disciplinary action or outlining the implications of their failure in writing.
Employers must ensure that they are following legal requirements and organizational policies in
this process. Clear communication about potential consequences can serve as both a
reprimanding measure and an educational opportunity for the employee.
In parallel with the challenge, employers must take proactive steps to mitigate their own
damages moving forward. This could involve revising policies, enhancing training programs, or
altering workflows to prevent similar occurrences in the future. By taking these actions,
employers can demonstrate their commitment to improvement while also strengthening their
position should the case lead to further disputes.
Finally, engaging legal counsel or human resources professionals can provide guidance tailored
to the specifics of the situation. These experts can help decipher the legal implications of a
failure to mitigate damages and aid in crafting a strategy that is both compliant and effective.
They can also assist in navigating potential litigation if the situation escalates, ensuring that
employers are prepared at every step.
In Ontario, challenging an employee’s failure to mitigate damages is a process that requires
careful consideration, thorough documentation, and open communication. By gathering relevant
facts, engaging in constructive dialogue, and addressing the situation with empathy and
professionalism, employers can not only protect their business interests but also promote an
environment of accountability and growth within their organization. Ultimately, the approach
taken must balance the need for resolution with the broader interests of the company, ensuring
that all parties involved are treated fairly and justly. Through strategic actions, employers can
mitigate present losses while constructing a foundation for future success.

46. the role of written warnings in defending wrongful dismissal cases.
The Role of Written Warnings in Defending Wrongful Dismissal Cases
In today’s complex employment landscape, the issue of wrongful dismissal has emerged as a
pivotal concern for both employers and employees. Wrongful dismissal refers to an employer
terminating an employee's contract without just cause, violating the employee’s legal rights or
the terms outlined in their employment agreement. As organizations grapple with an increasingly
litigious environment, understanding the nuances of labor law, employee rights, and employer
obligations has never been more critical. Among the various tools at an employer's disposal to
defend against wrongful dismissal claims, written warnings play a significant role in providing
documentation and establishing a foundation for fair and justified employment practices.

Understanding Written Warnings
Written warnings are formal documents issued by employers to employees regarding misconduct
or performance issues. These warnings are intended to alert the employee to specific problems,
outline expectations for improvement, and notify them of potential consequences if the concerns
remain unaddressed. Common reasons for issuing written warnings include consistent tardiness,
poor performance, violation of company policies, or unprofessional behavior.
Written warnings typically follow a progressive discipline model, where corrective actions are
taken step-by-step. The model generally starts with verbal warnings, followed by written
documentation, and, if necessary, escalates to more severe consequences, including termination.
This documented progression serves several purposes, including giving employees a chance to
rectify their behavior and ensuring that employers maintain a fair approach to disciplinary
actions.
Establishing Just Cause
In the realm of wrongful dismissal cases, the concept of "just cause" is central to the employer's
defense. Termination without just cause may expose employers to legal action. Written warnings
provide tangible evidence that an employer has taken steps to address an employee's
shortcomings before resorting to termination. The documentation of these warnings can establish
a clear narrative of an employee's failure to correct performance issues or misconduct over time.
When an employee claims wrongful dismissal, the presence of written warnings demonstrates
that the employer acted reasonably in their decision. Courts often look assess whether an
employer provided sufficient opportunity for an employee to improve before termination.
Written warnings highlight that the employee was aware of their shortcomings and the
consequences associated with them, potentially solidifying the employer's position that they
acted justly.
Documenting the Employee’s Responsibility
Written warnings create a formal record of the employee's awareness of their performance issues
or misconduct. This documentation helps delineate the employee’s responsibility in the matter.
When employers provide written warnings, they can clearly outline the specific incidents that
prompted the warnings, the improvements expected of the employee, and the timeline for such
improvements.
This clarity is crucial for defending against wrongful dismissal claims. An employer that fails to
provide adequate documentation may find it challenging to prove its case in court. In contrast,
when written warnings are well-articulated, they serve as an organized record of the employee's
conduct, the employer's response, and the opportunities afforded to the employee to rectify the
situation. The more comprehensive and detailed these warnings are, the stronger the employer’s
defense becomes.
Demonstrating Fairness in Disciplinary Practices

Employers have a legal and ethical obligation to treat their employees fairly. The issuance of
written warnings, aligned with a clear and consistent disciplinary process, fosters a culture of
accountability and fairness. When faced with wrongful dismissal claims, employers must
demonstrate that their policies and procedures were followed, which includes maintaining a
consistent approach to discipline across the organization.
By documenting warnings and adhering to a progressive discipline policy, employers can show
that they have treated the employee in question similarly to how they would treat other
employees in comparable situations. Consistency in the application of disciplinary measures is
essential in defending against claims of discrimination or retaliatory behavior. If the courts
perceive that an employer applied their disciplinary policies inconsistently, it may weaken the
employer's case in a wrongful dismissal hearing.
Facilitating Effective Performance Management
Written warnings not only serve a defensive purpose in the context of wrongful dismissal cases
but also play a proactive role in performance management. By utilizing written warnings,
employers can better manage employee performance and encourage improvement. The
structured feedback provided through written documentation helps employees understand the
expectations set before them.
When employees realize they are being held accountable, they are more likely to engage in open
discussions about their performance and seek the necessary support to improve. This proactive
engagement not only helps to avoid potential wrongful dismissal cases but also contributes to a
healthier and more productive workplace culture.
Mitigating Financial Risks
From a practical perspective, defending against wrongful dismissal claims can be time-
consuming and financially burdensome for an organization. Legal fees, settlements, and damages
awarded to wrongfully dismissed employees can add up quickly. By adhering to a clear process
that includes the issuance of written warnings, employers mitigate the risk of facing claims in the
first place.
Court systems often value the application of fair employment practices, and employers with a
robust system of documentation and progressive discipline can prevent prolonged legal battles
that chew away at company resources. Written warnings serve as vital evidence that the
employer took reasonable steps to correct an employee's performance issues before termination,
potentially leading to favorable outcomes in legal disputes.
In Ontario
In summary, written warnings are an integral component of an employer's strategy for defending
against wrongful dismissal claims. By establishing a clear record of employee performance
issues, demonstrating just cause for dismissal, and facilitating accountability, these documents

serve both defensive and proactive purposes. They showcase an employer's commitment to fair
employment practices and their efforts to support employees in rectifying performance
challenges.
As the workplace evolves in synergy with changing employment laws and employee
expectations, the significance of proper documentation, including written warnings, becomes
increasingly paramount. Employers who prioritize clear communication, fairness, and structured
performance management not only reduce their exposure to wrongful dismissal claims but also
contribute to a more positive workplace culture that fosters growth, mutual respect, and
accountability.

47. the legal defenses available in cases of consensual workplace relationships.
Legal Defenses in Cases of Consensual Workplace Relationships
The workplace has evolved significantly over the decades, leading to increasingly complex
interpersonal dynamics among employees. One of the most contentious issues that can arise is
the consensual workplace relationship. While such relationships are often romantic, they can also
encompass friendships or other personal connections that develop between colleagues. However,
these relationships can lead to legal challenges, particularly when they result in allegations of
harassment, discrimination, or conflicts of interest. Understanding the legal defenses available in
cases involving consensual workplace relationships is essential for both employers and
employees navigating potential legal pitfalls.
Defining Consensual Relationships
Before diving into legal defenses, it is essential to clarify what constitutes a consensual
workplace relationship. Generally, such relationships occur between employees—where both
individuals willingly participate without coercion, manipulation, or exploitation. This consent is
fundamental, as it contrasts sharply with situations involving harassment or power imbalances,
where one party may feel pressured to engage in a relationship due to fear of repercussions.
Potential Legal Issues Arising from Consensual Relationships
While consensual relationships are common in workplace settings, they can give rise to various
legal issues. Allegations can arise if one party later claims that the relationship was not as
consensual as it seemed, particularly if the dynamics involve differing levels of authority. For
example, if a supervisor enters a relationship with a subordinate and later faces accusations of
favoritism or harassment, the situation may complicate matters for both parties involved.
Here's where the legal defenses come into play. Various defenses can help individuals and
organizations navigate these potentially challenging situations.
1. The Defense of Consent
One of the fundamental defenses in any relationship-related legal scenario is the verification of
consent. In instances where a consensual workplace relationship is called into question,

demonstrating that both parties engaged willingly is pivotal. If both individuals can present
evidence supporting their mutual agreement to engage in the relationship, this can serve as strong
legal protection.
For employers, it is essential to have clear, written policies regarding relationships in the
workplace. These policies should not only define what constitutes a consensual relationship but
also establish protocols for disclosing such relationships—especially when they involve
hierarchical dynamics, such as supervisor-subordinate interactions. A well-structured policy can
help demonstrate that an employer has taken appropriate steps to address the issue and uphold
transparency.
2. The Reasonable Person Standard
Courts often apply what is known as the "reasonable person standard" in harassment cases
related to workplace relationships. This standard assesses whether a typical person, in the same
circumstance, would consider the behavior troubling or inappropriate. In cases of consensual
relationships, defense arguments may highlight that the relationship would not be perceived as
problematic by a reasonable individual, especially if both parties involved maintained clear
boundaries between their personal and professional interactions.
If established, this defense can mitigate claims of harassment or inappropriate behavior,
especially if there is evidence showing that the workplace environment remained professional
and did not contribute to a hostile atmosphere.
3. The "No Harm, No Foul" Principle
Employers may invoke the "no harm, no foul" principle, arguing that if a relationship was
consensual and resulted in minimal disruption to workplace operations or employee morale, then
there should be limited repercussions. Courts often consider the overall impact of the relationship
on the work environment when deciding such cases.
To effectively leverage this defense, employers would need to provide documentation supporting
their claims. This may include employee performance metrics, feedback from coworkers, and
overall workplace culture assessments. A harmonious work environment with no resultant harm
due to the relationship can bolster this defense.
4. Policies against Retaliation
In cases where allegations arise following the breakdown of a consensual workplace relationship,
retaliation claims may surface. If one party feels that they suffered adverse business
consequences as a result of the relationship, it can complicate matters significantly. This is where
the existence of comprehensive anti-retaliation policies becomes essential.
Employers can defend themselves against such claims by demonstrating that appropriate
procedures were followed in dealing with performance or behavioral issues, irrespective of
personal relationships. A robust anti-retaliation policy protects employees from unfair treatment

based on their involvement in a consensual relationship. An employer that can show adherence
to this policy is likely to strengthen its legal position.
5. Choice of Venue and Jurisdiction
Legal defenses can also hinge on procedural matters, such as the choice of venue and
jurisdiction. Employers may challenge jurisdiction if a lawsuit is brought in a venue that does not
have a connection to the parties or the events in question. Establishing that the relationship did
not occur in that jurisdiction or that relevant parties have no substantial ties can serve as a
powerful defense against claims related to workplace relationships.
6. The Employer’s Duty of Care
Employers have a legal duty of care toward their employees, ensuring a safe and non-hostile
work environment. When the employer has demonstrably taken proactive steps to address the
potential risks associated with workplace relationships—through training, policy dissemination,
and ensuring that employees are informed of their rights—they may have a solid basis for
defending allegations arising from consensual relationships.
This defense rests on the employer's commitment to maintaining transparency and developing a
respectful workplace culture. By fostering open communication about relationships and
individual rights, employers can strengthen their legal position and demonstrate compliance with
labor laws.
In Ontario
Navigating the legal landscape of consensual workplace relationships requires both employees
and employers to be informed about their rights and responsibilities. While these relationships
can enrich the workplace environment, they also pose potential legal challenges that can lead to
misunderstandings, accusations, and disputes.
Employers equipped with clear relationship policies, anti-retaliation measures, and
comprehensive duty-of-care practices can significantly enhance their defense against any legal
implications. Simultaneously, employees must be cognizant of the possible consequences of their
choices and engage in practices that foster mutual respect and clarity in their workplace
interactions.
Ultimately, understanding the available legal defenses enables both parties to navigate
consensual workplace relationships with confidence, thereby fostering a more respectful and
transparent work environment. Proper communication, documented consent, and adherence to
established policies can minimize the risks associated with these relationships, ensuring that
workplaces remain productive and conducive to both personal and professional growth.

48. the impact of termination for cause on severance obligations.
The Impact of Termination for Cause on Severance Obligations

The termination of employment is one of the most challenging situations both employers and
employees face in the workplace. When an employee is terminated "for cause," it typically
signifies a breach of conduct or failure to meet job expectations that justifies immediate
dismissal. Such terminations can arise from various reasons, including gross misconduct,
insubordination, theft, or severe violations of company policy. Understanding the ramifications
of such a termination, particularly regarding severance obligations, is crucial for both parties
involved.
Defining Termination for Cause
Termination for cause, often referred to as dismissal for cause, reflects a breakdown in the
employment relationship due to the employee's actions or failure to perform their duties. Unlike
a layoff or resignation, which typically involve the decision to end employment without blame,
termination for cause occurs when behavior or performance issues warrant immediate separation
from the organization.
An employer usually must have sufficient documentation to support the termination decision
when proceeding with a case for cause. This could include performance reviews, written
warnings, or other disciplinary documentation demonstrating the employee’s failure to adhere to
expected standards.
Severance Obligations: An Overview
Severance pay is a monetary compensation provided to employees upon termination, often based
on their tenure, position, and the terms of their employment contract. Severance agreements are
designed to offer employees a financial cushion as they transition out of their roles, often
providing funds to cover living expenses while they seek new employment.
However, the obligation to pay severance is heavily influenced by the circumstances surrounding
the termination. In many cases, employment contracts or company policies outline the specific
conditions under which severance will be paid, which often includes clauses stating that
termination for cause may negate any severance entitlement.
The Legal Ramifications of Termination for Cause
When an employee is terminated for cause, the general legal principle is that they are not entitled
to severance pay. This principle is grounded in the idea that employees who engage in behavior
warranting immediate dismissal have violated the trust and conditions of their employment.
Courts typically uphold this idea, making it clear that companies can refuse severance payment
when termination meets the criteria for cause.
That said, the determination of "cause" is not always straightforward. Factors that influence this
determination include the nature of the misconduct, the clarity of the company’s policies, and
whether the employer followed proper disciplinary procedures. For instance, if an employer
terminates an employee for stealing but does not have clear evidence of the alleged behavior, a

court may rule in favor of the employee if they contest the termination. In such cases, the
question of severance may also emerge, further complicating the matter.
Policies and Employment Contracts
The presence of specific policies and employment contracts significantly shapes the obligations
concerning severance pay. Many organizations include extensive documentation that clearly
outlines the terms of severance pay and the conditions under which it can be forfeited. These
documents often stipulate that voluntary resignations or terminations for cause will nullify any
entitlement to severance.
Employers must ensure that their contracts and employee handbooks contain clear language
regarding severance entitlement and clearly define what constitutes termination for cause.
Inconsistencies or vague language can lead to liability and disputes, particularly if an employee
contends that their termination did not meet the threshold for cause.
Implications for Employers
For employers, navigating severance obligations following a termination for cause carries several
implications. First, they must carefully consider the grounds for termination and ensure they
have sufficient evidence to support their decision. If termination is poorly justified, they risk
legal challenges from the terminated employee, including claims for wrongful termination and
demands for severance pay.
Moreover, employers must recognize that reputational risks exist following a termination for
cause. A terminated employee may speak publicly about their experience, potentially damaging
the employer's brand and affecting their ability to attract future talent. The impact of these
reputational concerns may lead organizations to offer severance packages even in cases of cause,
albeit typically at a reduced rate or contingent on signing a release of liability.
Employee Considerations and Repercussions
For employees terminated for cause, the implications are significant. Not only do they face the
immediate loss of income, but they may also experience challenges in obtaining new
employment. Many prospective employers conduct background checks that include inquiries into
a candidate’s past employment, and a termination for cause could raise red flags for future hiring
managers.
Employees should also be aware of their legal rights in the face of termination. If they believe
they were unjustly terminated, they may seek legal counsel to explore potential claims against
the employer. In cases where the employer fails to follow proper procedures, employees may
have recourse and could potentially recover severance under wrongful termination claims.
Additionally, individuals in this situation should evaluate their eligibility for unemployment
benefits. Depending on state laws and the specific reasons for their termination, they may still be
entitled to unemployment compensation despite being terminated for cause. Understanding these

rights is crucial for those facing the challenges of finding new employment after a contentious
termination.
Negotiating Settlements and Waivers
In some cases, employees and employers may negotiate settlements that address severance pay
despite a termination for cause. Employers may choose to offer a severance package as part of a
mutual agreement to expedite the end of the relationship and limit potential legal claims.
Negotiations typically involve a review of the circumstances surrounding the termination and the
potential costs associated with disputes. An employer might offer a severance package if it
determines that doing so will mitigate the risk of litigation or protect its reputation. Particularly
in sensitive industries or roles, finding a resolution can be mutually beneficial.
In Ontario
Termination for cause has far-reaching implications for severance obligations, significantly
impacting both employers and employees. Employers must approach terminations with caution,
ensuring they have appropriate documentation and clear compliance with company policies. By
clarifying the grounds for termination and the associated rights of the employee, employers can
mitigate legal risks and navigate potential disputes.
Conversely, employees must be vigilant regarding their rights following a termination for cause,
understanding the nuances of severance obligations and their legal recourse. The intersection of
these factors underscores the complexity of employment law and the necessity for both parties to
proceed carefully in the event of a termination for cause.
In a landscape where relationships between employers and employees are becoming increasingly
complex, understanding the implications of such terminations will be vital for fostering fair and
transparent workplaces. Properly addressing the issue of severance obligations amidst
terminations for cause can ultimately assist in minimizing conflict, protecting reputations, and
supporting smoother transitions for those involved.

49. whether an employer can rely on after-acquired cause in Ontario.
After-Acquired Cause in Employment Law in Ontario
In the complex world of employment law, the concept of "after-acquired cause" plays a
significant role in certain termination cases. This principle allows employers to defend against
wrongful dismissal claims by presenting evidence of misconduct by an employee that was
discovered after the termination. In Ontario, the application of after-acquired cause provides an
intriguing area of legal analysis, raising questions about fairness, due process, and the rights of
employers and employees alike.
Understanding After-Acquired Cause

After-acquired cause refers to the idea that, even if an employer did not have a valid reason to
terminate an employee at the time of dismissal, they can still justify the dismissal if evidence of
wrongdoing comes to light later. This principle serves to prevent employees from gaining
benefits or claims they would not have received had the employer been aware of the misconduct
beforehand.
In employment law, this concept might emerge when an employee is terminated without any
apparent misconduct or legitimate reason, only for the employer to discover significant issues
afterward that would have justified termination. These issues might include falsifying
information on a resume, theft, harassment, or breaches of company policy.
The Legal Framework in Ontario
In Ontario, the legal framework surrounding after-acquired cause primarily relies on the common
law as developed through case law. Courts have long established that employers cannot hide
behind after-acquired cause to absolve themselves of responsibility for wrongful dismissal claims
if the termination was not justified at the time it occurred.
For example, in the landmark case of Mason v. 408123 Ontario Ltd., the Ontario Court of Appeal
articulated that while after-acquired cause may serve as a partial defense, it does not
automatically eliminate an employee’s right to claim damages for wrongful dismissal. The court
ruled that an employer must show that the misconduct would have led to immediate dismissal
had it been known at the time of termination.
As such, to effectively rely on after-acquired cause as a defense, employers in Ontario must first
prove that the behavior or misconduct in question is sufficiently severe and directly relevant to
the employment relationship. They must also demonstrate that this behavior would have
influenced their initial decision to terminate.
Implications for Employers
For employers contemplating the use of after-acquired cause as a defense, the first consideration
should be the timing and process of termination. Proper procedures are critical to ensure that any
claim of after-acquired cause stands up in court. Employers must conduct thorough
investigations before termination and ensure that their reasons are well-documented to protect
against future claims of wrongful dismissal.
If an employer discovers misconduct after a termination has occurred, relying on after-acquired
cause can significantly affect an employee’s entitlement to damages. However, the employer’s
reliance on this defense should be cautiously approached. It is essential to assess whether the
misconduct discovered is serious enough to warrant termination and whether the investigation
conducted was thorough and fair.
Employee Rights in Light of After-Acquired Cause

For employees covered under Ontario law, the prospect of after-acquired cause can be both a
source of concern and a point of contention. Upon being terminated, employees may be
understandably frustrated and confused, especially if they believe their dismissal lacks
justification. The introduction of after-acquired cause can further complicate their pursuit of
wrongful dismissal claims.
If after-acquired cause is raised by the employer, the employee may need to prepare a robust
defense that counters the claims of misconduct. Employees have the right to contest the reliance
on after-acquired cause by demonstrating that the employer was aware of the behavior or that the
behavior cited does not justify termination.
Additionally, employees should be aware that their entitlement to reasonable notice or severance
pay will hinge on whether their employer can prove that the after-acquired misconduct was
indeed sufficient to warrant dismissal. If the misconduct is unrelated to workplace performance
and does not rise to a severity that justifies dismissal, employees may still succeed in their
wrongful dismissal claim.
Factors Influencing After-Acquired Cause Cases
Several factors influence how after-acquired cause is applied in Ontario. Primarily, courts will
consider the nature of the misconduct, the timing of its discovery, and the overall context of the
employee’s tenure with the company.
1. Nature of Misconduct: Misconduct must be directly related to the employment duties. For
instance, if an employee falsifies qualifications on their resume, it raises concerns about their
suitability for the position, and after-acquired cause may be more readily accepted by the court.
However, if the misconduct is unrelated to job performance—such as personal conduct outside
of work—it might not suffice for after-acquired cause.
2. Timing of Discovery: The closer the discovery of the misconduct is to the time of termination,
the more likely it is that after-acquired cause will be deemed applicable. If significant time has
passed, courts may question the relevance of the misconduct at the time of termination.
3. Documentation and Fairness: Employers should maintain accurate records and documentation
of any misconduct, as this will be critical in proving their case. The failure to investigate
thoroughly or provide the employee with an opportunity to respond to allegations can further
complicate reliance on after-acquired cause.
Recent Case Law Developments
Recent case law in Ontario has helped shape the legal landscape surrounding after-acquired
cause. For instance, in the case of Bromley v. Trotter & Morton Ltd., the Ontario Court of
Appeal upheld the view that, even if an employer has the means to terminate an employee for
misconduct revealed post-termination, they cannot retroactively change the context or legality of
the initial termination decision.

This highlights the courts' emphasis on proper procedure and fairness throughout the
employment termination process. It also reinforces the idea that an employer's behavior prior to
the termination is paramount; one cannot merely rely on later-discovered issues to justify prior
actions that lacked legitimate grounds.
In Ontario
In Ontario, the concept of after-acquired cause represents a critical component of employment
law in Ontario, impacting how termination claims are adjudicated. While it provides a potential
defense for employers faced with wrongful dismissal claims, its application is nuanced,
contingent upon the nature of misconduct, timing, and adherence to fair procedures.
For employers, understanding the limitations and requirements surrounding after-acquired cause
is paramount for mitigating risks and protecting their interests. Employees, on the other hand,
must remain vigilant about their rights and entitlements, recognizing that post-termination
evidence of misconduct can complicate their claims.
Ultimately, both parties must navigate this intricate legal landscape thoughtfully and judiciously,
underscoring the importance of established protocols, fair treatment, and meticulous
documentation in the management of employment relationships in Ontario. As employment law
continues to evolve, the implications of after-acquired cause will undoubtedly remain a vital area
warranting careful consideration and ongoing discourse.

50. how to use evidence of employee misconduct in wrongful dismissal defenses.
Using Evidence of Employee Misconduct in Wrongful Dismissal Defenses
Wrongful dismissal claims present a complex challenge for employers. When an employee
believes they have been terminated without proper justification, they may pursue legal action for
damages, typically seeking compensation for lost wages, benefits, and emotional distress. In such
scenarios, evidence of employee misconduct can serve as a critical tool for employers to defend
their decisions and mitigate liability. However, effectively leveraging this evidence is nuanced
and requires a thorough understanding of best practices and legal principles.
Understanding Wrongful Dismissal
Before delving into the use of misconduct evidence, it’s essential to grasp what wrongful
dismissal entails. Generally, wrongful dismissal occurs when an employer terminates an
employee without just cause and fails to provide the requisite notice or severance pay under
employment law principles. In most cases, employers must establish that the termination was
justified by demonstrating valid cause—typically involving severe acts of misconduct or poor
performance.
Employers face significant risks if they cannot substantiate their reasons for termination, and the
law typically favors employees when termination is disputed. Therefore, employers must ensure
they are prepared with solid evidence should a wrongful dismissal claim arise.

The Role of Evidence in Wrongful Dismissal Defense
Evidence plays a central role in establishing an employer’s position in a wrongful dismissal case.
The use of documented evidence can support claims of just cause and counteract an employee's
assertions of unfair treatment. Key types of evidence that may be pivotal include:
1. Performance Reviews: Regular performance evaluations can provide insights into an
employee's job performance over time. If a termination stems from poor performance,
conducting and documenting performance reviews highlights the employer’s proactive approach
to managing employee performance and provides a foundation for the decision to terminate.
2. Written Warnings: Progressive discipline is a common approach that employers use to
document concerns before terminating employment. Should misconduct arise, employers should
ideally provide written warnings outlining the issues, expected improvements, and consequences
if performance does not improve. This documentation can demonstrate that the employee was
aware of their shortcomings and had an opportunity to correct them.
3. Witness Statements: If misconduct involves interactions with colleagues, clients, or customers,
obtaining witness statements or testimonies can further corroborate claims against the employee.
These statements can offer additional context and support the employer’s decision.
4. Video or Audio Recordings: In certain situations, recordings from security cameras or
meetings may serve as direct evidence of misconduct. For example, video evidence may capture
harassment, theft, or violation of company policy. While privacy considerations must be taken
into account, and employers must ensure they comply with applicable laws regarding
surveillance and recording, valid evidence can be compelling.
5. Company Policies: Clear policies outlining expected behavior and the consequences of
misconduct are critical. Employers should ensure employees receive training on these policies
and have access to handbooks. If an employee violates a well-documented policy, this provides
strong evidence for the employer’s case.
Best Practices for Documenting Misconduct
While accumulating evidence of misconduct is essential, how that evidence is gathered,
presented, and maintained is equally important. Employers should follow several best practices
for documentation:
1. Be Consistent and Impartial: Documentation should be objective and fact-based. Distortions or
embellishments can undermine credibility and lead to issues if scrutinized in a legal setting.
Employers must assure that they're treating all employees consistently and fairly.
2. Timeliness Matters: Evidence should be documented as soon as possible after the incident
occurs. Timely documentation helps maintain urgency and relevance regarding the misconduct,
demonstrating that the employer acted quickly and decisively.

3. Maintain Confidentiality: When documenting misconduct, especially in sensitive situations
(e.g., harassment allegations), it’s crucial to maintain confidentiality to protect both the employer
and the employee. Sharing information only with those who need to know helps mitigate
potential reputational risks.
4. Conduct Fair Investigations: When misconduct is reported, employers should conduct
thorough and unbiased investigations. This process often involves gathering evidence,
interviewing involved parties, and considering mitigating factors. Fair investigations help
support the employer's position and demonstrate responsiveness to the situation.
Using Misconduct Evidence in Legal Proceedings
When facing a wrongful dismissal claim, employers should deploy the collected evidence
effectively in legal proceedings. Here are critical areas to consider:
1. Burden of Proof: In many wrongful dismissal cases, the employer carries the burden of
proving that the termination was justified. This means thoroughly presenting evidence showing
that the misconduct occurred, its severity, and why it warranted immediate termination or
dismissal.
2. Legal Counsel: Engaging legal representation during disputes is vital. Attorneys familiar with
employment law can provide specific guidance on case strategy, advise on the admissibility of
evidence, and assist in crafting a coherent defense. They can help navigate the complexities of
presenting evidence in a legal setting while ensuring compliance with labor laws.
3. Negotiate Settlement Options: Often, wrongful dismissal claims can be resolved out of court
through negotiation. Presenting strong evidence of misconduct during settlement discussions can
facilitate a more favorable outcome for employers, potentially leading to less liability or a faster
resolution than a court trial. Employers should aim to negotiate settlements in good faith,
leveraging their evidence to support their position.
4. Be Prepared for Counterarguments: Employees may contest the evidence presented, arguing
that the misconduct was either exaggerated or not sufficiently serious to justify termination.
Employers must prepare for such counterarguments, possibly by anticipating claims of
discrimination, retaliation, or other wrongful actions that may be raised.
Reassessing Internal Practices
Regardless of the outcome of a wrongful dismissal claim, the process can provide significant
insights for an organization. Employers should regularly assess and enhance their internal
policies and practices to prevent future disputes. This might involve:
1. Regular Training: Offering training sessions for management on recognizing and appropriately
handling employee misconduct, conducting fair investigations, and understanding the
requirements for a just termination based on documented evidence.

2. Clarifying Policies: Keeping company policies updated and ensuring that all employees are
informed about workplace conduct expectations helps solidify an organization’s commitment to
ethical and responsible management.
3. Encouraging Open Communication: Cultivating an open forum for employees to voice
concerns and grievances can foster a proactive work environment that addresses potential issues
before they escalate.
In Ontario
Employee misconduct can serve as a pivotal element in defending against wrongful dismissal
claims. By adequately documenting evidence of misconduct—coupled with fair procedures and
legal guidance—employers can uphold their right to make necessary employment decisions
while mitigating potential risks associated with wrongful dismissal claims.
Navigating the nuances of employment law requires diligence, a commitment to fairness, and an
understanding of best practices surrounding documentation and evidence handling. With solid
strategies in place, employers can enhance their ability to defend against wrongful dismissal
claims effectively while fostering a workplace culture built on accountability and transparency.

Intersection of Criminal Law and Employment Law
51. when sexual harassment becomes a criminal matter in Ontario.
When Sexual Harassment Becomes a Criminal Matter in Ontario
Sexual harassment is a pervasive issue in societies worldwide, affecting individuals in various
environments, including workplaces, schools, and public spaces. In Ontario, Canada, sexual
harassment encompasses a range of inappropriate behaviors that may violate both legal
regulations and individual rights. Understanding when sexual harassment transitions from a civil
issue to a criminal matter is vital for victims and advocates, as it influences how incidents are
reported, handled, and prosecuted.
Defining Sexual Harassment
In Ontario, sexual harassment is defined broadly under both the Ontario Human Rights Code and
the Occupational Health and Safety Act (OHSA). According to the Human Rights Code, sexual
harassment is any unwelcome verbal or physical conduct of a sexual nature that creates an
intimidating, hostile, or offensive environment. This includes behaviors such as unwanted
touching, suggestive comments, sharing inappropriate materials, or making sexual advances.
While all forms of sexual harassment are problematic, they do not all necessarily constitute
criminal offenses. Criminal sexual harassment typically involves conduct that crosses a legal
threshold defined by the Criminal Code of Canada. Understanding this distinction is crucial as it
determines the appropriate recourse for victims.
The Legal Framework

In Ontario, sexual harassment may lead to civil claims or human rights complaints, but certain
behaviors fall under the criminal realm as defined in the Criminal Code of Canada. For conduct
to be considered criminal, it generally must involve elements such as intention, threat, or
significant distress caused to the victim.
The Criminal Code outlines specific offenses related to sexual harassment, including:
1. Sexual Assault: Under Section 271 of the Criminal Code, sexual assault occurs when a person
intentionally applies force to another person in a sexual manner without their consent. This
offense is applicable in cases of unwanted physical contact.
2. Criminal Harassment: Section 264 of the Criminal Code addresses conduct deemed criminal
harassment. This includes repeatedly following, communicating with, or engaging in threatening
behavior against someone that causes them fear for their safety or the safety of others.
3. Sexual Exploitation: Covered under Section 153, this entails engaging in sexual conduct with
someone who is in a position of trust, authority, or dependency. This law protects individuals
from exploitative relationships where power dynamics exist.
4. Indecent Acts: Under Section 173, committing an indecent act in public or exposing oneself to
another person without consent falls under criminal offenses.
When Does Sexual Harassment Become Criminal?
Differentiating between civil sexual harassment and criminal sexual harassment hinges on
various factors:
1. Severity and Nature of the Conduct: Mild forms of sexual harassment, such as inappropriate
jokes or comments, typically do not reach the threshold for criminal charges. However, when the
behavior escalates to unwanted touching, threats, or coercive actions, it may become criminal in
nature.
2. Victim’s Response and Perception: The impact of behaviors on the victim is key. If the
conduct instills a genuine fear or distress, and the victim believes they are being threatened or
assaulted, it may justify pursuing a criminal case rather than a civil one. It’s critical that victims
feel safe and supported in discussing their experiences.
3. Intent: The perpetrator's intent significantly influences whether actions are deemed criminal.
Intentional acts that aim to harass or intimidate the victim often cross into criminal territory,
particularly when they lead to threats or physical contact.
4. Pattern of Behavior: A pattern of harassment can indicate a higher level of risk and escalate
the perceived threat. Continuous stalking or harassment behaviors often meet the criteria for
criminal harassment.

5. Reporting: Victims may initially approach their employers or human resources departments
regarding workplace sexual harassment. However, if the behavior is serious enough, they are
entitled to contact law enforcement. Once the police are involved, they will assess the situation
to determine whether the actions constitute a criminal offense.
The Reporting Process
In cases where sexual harassment crosses into criminal behavior in Ontario, victims have several
avenues for reporting:
1. Contacting Law Enforcement: Victims can report incidents to the local police. Officers are
trained to handle sexual harassment and assault cases with sensitivity. It is crucial for victims to
provide as much detail as possible about the incident to facilitate a comprehensive investigation.
2. Documentation: Victims are encouraged to document incidents of harassment or assault,
including dates, times, locations, witnesses, and any communications or evidence (like
screenshots or photographs). This documentation aids in building a stronger case if the matter is
taken to court.
3. Seeking Support: Beyond legal recourse, victims may seek support from community
organizations, counselors, or hotlines specializing in sexual violence services. These resources
can provide emotional support, guidance on legal rights, and information on next steps.
Legal Consequences for Perpetrators
Should sexual harassment allegations escalate to criminal charges, perpetrators can face severe
legal consequences, including:
1. Criminal Prosecution: If charged with a crime, they may face court proceedings, including a
trial. Depending on the seriousness of the charges, penalties can range from fines to
imprisonment.
2. Sexual Offender Registry: Convictions for sexual assault or similar offenses may require
individuals to register as sex offenders, impacting their ability to work, travel, and reside in
certain areas.
3. Career Implications: Individuals found guilty may also experience professional fallout, such as
termination from employment or restrictions on future employment opportunities, particularly in
sensitive fields.
The Importance of Awareness and Education
To combat sexual harassment effectively and reduce the number of incidents that escalate to
criminal matters, it is essential to foster an environment of awareness and education.
Organizations can implement training programs that educate all employees about harassment
definitions, reporting procedures, and resources available for support.

Furthermore, promoting a workplace culture that prioritizes respect and accountability can
discourage inappropriate behaviors and empower individuals to speak up when they encounter
harassment.
In Ontario
Sexual harassment is a critical issue that can have profound implications for victims and the
broader community. Understanding when sexual harassment becomes a criminal matter in
Ontario helps victims make informed decisions about their recourse options. By recognizing the
distinction between civil and criminal behavior, individuals can seek appropriate support and
take necessary actions to protect their rights and well-being.
Ultimately, prevention, awareness, and education play pivotal roles in addressing sexual
harassment, ensuring victims are supported and the legal framework is upheld. By fostering a
culture of respect and understanding, society can move toward a future where sexual harassment
is no longer tolerated and victims feel safe coming forward to report their experiences.

52. the interaction between criminal investigations and civil claims for harassment.
The Interaction Between Criminal Investigations and Civil Claims for Harassment
Harassment, whether in the workplace, school, or public sphere, presents significant challenges
for individuals and organizations alike. When incidents escalate, they create a complex interplay
between criminal law and civil claims. Understanding how these two avenues interact can help
victims navigate their options, ensure accountability, and foster safer environments.
Defining Harassment
At its core, harassment involves unwanted behaviors that cause distress or harm to another
person. It can take various forms, including verbal, physical, and psychological abuse. In many
jurisdictions, harassment can entail civil and criminal violations. Civil law typically addresses
claims like workplace harassment, while criminal law deals with offenses that threaten public
safety, such as assault or stalking.
Criminal Investigations: The Legal Context
Criminal harassment is defined under various legal statutes, including the Criminal Code in
Canada and other jurisdictions. In many cases, criminal harassment can involve behavior
intended to intimidate, threaten, or control another person. For instance, in Canada, Section 264
of the Criminal Code outlines "criminal harassment" as involving repeated following,
communicating with, or engaging in threatening behavior that causes the victim reasonable fear.
When law enforcement becomes involved, they conduct investigations to determine whether
criminal charges are warranted.
If the authorities conclude that a likely crime has occurred, they may initiate prosecution. This
process often involves gathering evidence, interviewing victims and witnesses, and analyzing the

situation to determine the best course of action. Importantly, criminal proceedings are initiated
by the state and are separate from an individual’s right to file civil claims for harassment.
Civil Claims: The Pursuit of Damages
In addition to pursuing criminal charges, victims of harassment may choose to file civil claims.
These claims typically seek monetary damages for the harm suffered due to the harassment. Civil
suits can involve numerous parties, such as employers, educational institutions, or individuals
directly involved in the harassment. The burden of proof in civil cases is usually lower than in
criminal cases, often requiring a "preponderance of the evidence" rather than "beyond a
reasonable doubt."
Victims may seek various forms of relief through civil claims, including compensatory damages
for emotional distress, lost wages, medical expenses, and punitive damages in cases of egregious
behavior. Successful civil lawsuits can provide victims with justice and hold harassers and
negligent parties accountable for their actions.
The Dichotomy and Overlap
The relationship between criminal investigations and civil claims for harassment can become
complex. While they often address the same behaviors, the focus and outcomes of each process
differ. Each path offers its own set of advantages and challenges.
1. Concurrent Proceedings: It is common for both criminal and civil processes to proceed
simultaneously. For example, a victim may file a police report prompting a criminal investigation
while also seeking damages through a civil lawsuit. This dual approach allows the victim to
pursue justice on multiple fronts.
2. Independent Findings: The outcomes of criminal and civil actions may differ. A defendant
may be acquitted in a criminal trial (meaning the evidence did not meet the "beyond a reasonable
doubt" standard) yet be found liable in a civil claim (meeting the "preponderance of the
evidence" standard). This difference arises from the distinct legal standards and purposes of each
process, leading to situations where a harassment victim can achieve partial justice through civil
means even when criminal charges are unsuccessful.
3. Impact of Criminal Proceedings on Civil Cases: The findings from a criminal investigation
can significantly influence a civil case. For instance, if a perpetrator is convicted of criminal
harassment, that conviction may serve as strong evidence in a related civil claim, potentially
easing the burden on the victim. Additionally, criminal proceedings can prompt a faster
resolution of civil matters by establishing a factual basis for the civil claim.
4. Costs and Resources: Navigating both criminal and civil systems can be resource-intensive.
Victims often face financial pressures associated with legal fees, court costs, and potential losses
from missed work. Additionally, the emotional toll of dealing with both processes concurrently
can be substantial, requiring support and access to counseling services.

Prosecutorial Discretion
One of the key components of the interaction between criminal investigations and civil claims
for harassment is prosecutorial discretion. Law enforcement agencies and prosecutors have the
power to decide whether to pursue criminal charges based on the available evidence. In instances
where authorities view the evidence as insufficient for a criminal case, victims may find
themselves feeling frustrated, as they may still seek justice through civil channels.
In some cases, victims may choose to advocate for changes in prosecutorial policies concerning
harassment crimes, particularly in contexts where systemic issues or biases are highlighted.
Moreover, ongoing community awareness and public pressure can lead to changes in how
harassment cases are handled in criminal courts.
Challenges in the Intersection of Criminal and Civil Law
The interaction between criminal and civil cases presents several challenges. Some of these
include:
1. Victim Reluctance: Victims of harassment may hesitate to report incidents to law enforcement
due to fears of not being believed, victim-blaming, or the potential repercussions of speaking out.
This reluctance can lead to underreporting of harassment crimes and, consequently, an increase
in civil claims lacking criminal support.
2. Legal Complexities: Navigating the legal landscape requires expertise and clarity. Victims
may benefit from legal counsel who can guide them through both the criminal and civil aspects
of their case, ensuring they understand their rights and available remedies.
3. Stigma and Retaliation: Victims may face stigma or retaliation in their workplaces or
communities for coming forward. Addressing harassment often requires organizations to create
supportive environments and implement appropriate policies to protect victims from further
harm.
Moving Forward: Prevention and Support
To alleviate the challenges associated with harassment and its legal ramifications, organizations,
communities, and institutions must invest in prevention and support systems. This includes:
1. Education and Training: Conducting regular training programs that educate employees,
students, and community members about harassment, its effects, and reporting procedures can
empower individuals to take action against harassment while building a culture of respect and
safety.
2. Strengthening Policies: Organizations should establish clear policies for addressing
harassment and ensure they are communicated effectively to all members of the community.
They should also create accessible reporting channels for victims.

3. Providing Support Services: Offering psychological support and counseling for victims can
help them heal and make informed decisions about their legal options.
4. Collaboration Between Entities: Building partnerships between law enforcement, legal aid
organizations, and community resources can create a more comprehensive support network for
victims navigating harassment claims.
In Ontario
The interaction between criminal investigations and civil claims for harassment highlights the
complexities and challenges victims face when seeking justice. By understanding the nuances of
these processes, victims can make informed decisions about pursuing their claims. It is essential
for society to foster environments that offer support and accountability, encouraging victims to
come forward and ensuring that the responsible parties are held accountable for their actions.
Strengthening the intersection of criminal and civil law is vital for creating safer communities
and promoting a culture where harassment is no longer tolerated.

53. whether criminal charges against an employee impact wrongful dismissal cases.
The Impact of Criminal Charges Against an Employee on Wrongful Dismissal Cases
In the realm of employment law, the intersection of criminal charges against an employee and
wrongful dismissal cases can create a complex legal landscape. Employees who face criminal
allegations may find themselves navigating not only the criminal justice system but also the
repercussions within their employment. This article explores how criminal charges can influence
wrongful dismissal claims, the considerations for employers and employees, and the broader
implications for workplace policies.
Understanding Wrongful Dismissal
Wrongful dismissal occurs when an employer terminates an employee's contract without just
cause or proper notice. In such cases, employees may pursue legal action for damages resulting
from the wrongful termination. Just cause for termination often includes instances of serious
misconduct, performance failures, or breach of policy.
In wrongful dismissal claims, courts generally evaluate whether the employer had sufficient
grounds to terminate an employee. If an employer fails to demonstrate just cause, the employee
may be entitled to damages, which can include compensation for lost wages, benefits, and
sometimes even punitive damages if the dismissal was conducted in a particularly egregious
manner.
The Role of Criminal Charges
When an employee faces criminal charges, the circumstances can significantly influence
wrongful dismissal claims. The nature of the charges, the relationship to the employee's job, and
the employer's response all play critical roles in determining the outcomes of both the criminal
proceedings and any subsequent civil claims.

1. Connection to Employment: If the criminal charges are directly related to the employee’s
work—such as theft from the employer, workplace harassment, or other job-related
offenses—this can strengthen the employer’s case for just cause termination. For example, if an
employee is charged with embezzlement, the employer may argue that the trust necessary for the
employment relationship has been irreparably damaged, justifying immediate dismissal.
2. Nature and Severity of Charges: The severity of the charges can also impact wrongful
dismissal cases. Minor infractions or allegations that do not reflect on the employee's ability to
perform their job responsibilities may not suffice for just cause. Conversely, serious charges,
such as assault or fraud, can provide a compelling case for the employer to terminate the
employee without notice.
3. Employer’s Response to Charges: Employers are expected to act reasonably in response to
employee misconduct, including criminal charges. If an employee is charged with a crime, the
employer should conduct a thorough investigation before taking any disciplinary action. Hasty or
unjust terminations can lead to wrongful dismissal claims, as courts often scrutinize the
employer's actions and rationale during the termination process.
The Criminal Justice System vs. Employment Law
It is essential to distinguish between the criminal justice system and employment law. A criminal
charge does not imply guilt; it simply indicates that an allegation has been made requiring
investigation and prosecution. An employee may be acquitted of criminal charges, or the charges
may be dropped, yet the employer’s decision to terminate based on those charges can lead to
complications.
1. Presumption of Innocence: In criminal cases, the accused is presumed innocent until proven
guilty. This principle does not necessarily apply within the employment context. An employer
may choose to terminate an employee based on the charges alone, potentially leading to disputes
over whether this termination was justified.
2. Impact of Criminal Proceedings on Employment Status: If an employee is convicted, this can
strengthen an employer's just cause argument in a wrongful dismissal claim. A conviction may
result in reputational damage that affects the employee's ability to perform their job duties,
enhancing the employer’s justification for dismissal. Still, dismissal during ongoing criminal
proceedings can be challenged, especially if the employee believes that the allegations do not
accurately reflect their character or behavior.
3. Civil Liability: Even if an employer has legal grounds to terminate an employee due to
criminal charges, they may still face civil liability if they fail to follow proper termination
procedures or do not allow the employee an opportunity to respond or defend themselves. Courts
may view improper termination as a breach of contract or a failure to uphold labor standards,
leading to claims for damages.
Considerations for Employers

Employers must tread carefully when considering termination due to criminal charges against an
employee. Key points include:
1. Conducting Thorough Investigations: Employers should investigate the circumstances
surrounding criminal charges before taking any disciplinary action. This investigation should
include gathering evidence, interviewing witnesses, and considering the employee’s side of the
story.
2. Following Company Policies: Employers must adhere to their internal policies regarding
disciplinary actions, ensuring any decisions are consistent with past practices. These policies
often outline processes for investigating allegations, potentially including provisions for
accommodations or leaves of absence during criminal proceedings.
3. Legal Counsel: Consulting with legal counsel or human resources professionals can help
employers navigate the complexities of employment law when faced with criminal charges
against employees. Legal advice can also assist in drafting termination letters that comply with
labor standards and avoid further litigation.
Implications for Employees
For employees facing criminal charges, the implications for wrongful dismissal claims are
significant:
1. Understanding Rights: Employees must understand their rights in the context of both criminal
law and employment law. This understanding may influence their decision-making regarding
whether to fight a dismissal or address the criminal charges directly.
2. Documenting Evidence: It is vital for employees to document all relevant information
regarding their employment, the charges, and communications with their employer. This
documentation can play a crucial role in any potential wrongful dismissal case and provide
context for the employer's decision.
3. Seeking Legal Advice: Employees should seek legal advice to explore their options,
particularly if they believe they have been wrongfully dismissed in light of criminal charges.
Legal representation can provide clarity and strategy for both the criminal and civil proceedings.
In Ontario
The relationship between criminal charges against an employee and wrongful dismissal cases is
intricate and multifaceted. While criminal charges can certainly influence an employer’s decision
to terminate, the connection to the employee's job, the nature of the charges, and the employer’s
response are critical factors in determining the legality of a dismissal.
Employees facing criminal allegations should remain informed about their rights and the
potential ramifications on their employment status. Both employers and employees must

navigate these complex waters with caution, ensuring that actions taken are justified, transparent,
and aligned with legal obligations. As workplace environments continue to evolve,
understanding the interplay between criminal charges and wrongful dismissal can help mitigate
risks and foster more effective resolutions for all parties involved.

54. the legal implications of false accusations of harassment in Ontario.
The Legal Implications of False Accusations of Harassment in Ontario
In recent years, the issue of harassment has gained significant attention, prompting widespread
discussions about the importance of creating safe, respectful environments in workplaces,
educational institutions, and public spaces. However, while the emphasis on protecting victims is
essential, it is equally vital to acknowledge the potential consequences of false accusations of
harassment. In Ontario, the legal implications of such allegations can have far-reaching effects,
impacting not only the accused but also the accuser, and the institutions involved. This article
will explore the various dimensions of false accusations of harassment, including legal
definitions, potential repercussions, and the balance required to ensure justice for all parties.
Understanding Harassment Under Ontario Law
Harassment encompasses a range of behaviors that can instill fear, distress, or harm in another
individual. Under the Ontario Human Rights Code, harassment is defined as engaging in
unwelcome conduct based on personal characteristics such as race, gender, sexual orientation,
disability, or other protected grounds. Furthermore, in the workplace context, the Occupational
Health and Safety Act obligates employers to take steps to prevent workplace harassment and
ensure a safe environment for employees.
In Ontario, harassment can be pursued through both civil and criminal avenues. Victims may file
complaints with the Ontario Human Rights Tribunal or pursue civil claims for damages. In
harassment cases, the burden of proof often rests on the accuser to establish that the alleged
conduct occurred and resulted in harm.
The Consequences of False Accusations
While addressing harassment is critical, false accusations can undermine the credibility of
genuine claims and have serious ramifications for those wrongfully accused. In Ontario, there are
several legal implications associated with false allegations of harassment.
1. Defamation Claims: One of the most immediate legal consequences of false accusations can
arise under defamation law. If an individual falsely accuses another of harassment, the accused
may have grounds to pursue a defamation lawsuit. Defamation, which encompasses slander
(spoken) and libel (written), requires the plaintiff to demonstrate that the false statement was
made and resulted in reputational harm. Successful defamation claims can lead to substantial
financial compensation for damages to one’s reputation, emotional distress, and loss of income.
2. Malicious Prosecution: If a false accusation leads to criminal charges, the accused may also
consider a claim for malicious prosecution. This legal concept arises when an individual is

subjected to legal proceedings without probable cause, motivated by malice. To succeed in a
malicious prosecution claim, the victim must establish that the prosecution was initiated without
sufficient evidence and that it resulted in harm to the accused. Given the high burden of proof,
such claims can be challenging but may offer a route for redress.
3. Impact on Employment: False accusations of harassment can severely impact the employment
status of the accused. Upon receiving a report of alleged harassment, employers are often
obligated to investigate the claims thoroughly. Depending on the seriousness of the allegations,
employees may be suspended or terminated during this process, even if the claims are eventually
proven false. The reputational damage and financial hardship resulting from such employment
consequences can be profound, underscoring the gravity of making unfounded allegations.
4. Psychological Impact: Beyond legal ramifications, the psychological toll on individuals
accused of harassment can be significant. False accusations can lead to shame, anxiety,
depression, and emotional distress. The stigma associated with being labeled as a harasser can
have lasting effects on personal relationships, professional standing, and mental well-being. The
psychological impact of false accusations is an essential consideration, as it highlights the
broader implications for individuals beyond the immediate legal ramifications.
The Burden on Victims of Harassment
It is crucial to recognize that the fear of false accusations can deter genuine victims of
harassment from coming forward. Many individuals worry about the social stigma associated
with reporting incidents or face skepticism regarding their claims. This hesitance can perpetuate
a culture of silence and inhibit efforts to combat harassment effectively.
Employers, institutions, and society at large must strike a delicate balance between supporting
victims and protecting individuals from false accusations. Implementing transparent procedures
for reporting allegations can help create safe environments while ensuring that investigations are
fair and unbiased.
Preventative Measures and Best Practices
To mitigate the risk of false accusations and ensure responsible reporting of allegations, several
best practices and preventative measures should be considered:
1. Education and Training: Organizations should provide training to employees, managers, and
students on recognizing and addressing harassment. This training should emphasize the
importance of responsible reporting, as well as the consequences associated with making false
claims. Creating an understanding of the dynamics of harassment can help foster an environment
of trust and safety.
2. Clear Reporting Procedures: Establishing transparent protocols for reporting allegations of
harassment can provide a structure that protects both victims and the accused. Clear processes
ensure that complaints are taken seriously and investigated thoroughly, allowing for open
communication and protection against retaliation.

3. Thorough Investigations: It is crucial for organizations to conduct impartial investigations into
allegations of harassment. Investigators should be trained to approach complaints sensitively and
objectively, gathering evidence from all parties involved. Ensuring a fair process can help
preserve the rights of the accused and uphold the dignity of victims of harassment.
4. Support Systems: Providing support services for both accusers and the accused can create a
more balanced approach to dealing with allegations. Counseling and mediation options can aid
those involved in navigating the complexities of allegations and their consequences.
Legal Reforms and Public Awareness
Addressing the issue of false accusations of harassment requires ongoing dialogue and public
awareness. Legal reforms may be necessary to ensure that the justice system appropriately
handles both genuine and false accusations. Public discussions can help shift the perception of
reporting harassment and establish a culture where both support for victims and protection
against wrongful accusations are prioritized.
In Ontario
The legal implications of false accusations of harassment in Ontario are complex and far-
reaching. While the importance of addressing genuine cases of harassment cannot be overstated,
the consequences of false allegations present significant challenges that must be carefully
managed. Navigating the intersection of victim support, due process, and the rights of the
accused is crucial for fostering a just and equitable society. Through education, policy changes,
and a commitment to fairness, it is possible to create an environment where individuals can
report harassment without fear, and where everyone’s rights are upheld. Balancing these
elements is essential for ensuring that the conversation about harassment remains focused on
justice and accountability for all.
55. the employer’s legal obligations if harassment involves criminal behavior.
Understanding Employer Obligations When Harassment Involves Criminal Behavior
In today’s workplace, the discussions surrounding harassment have evolved significantly,
particularly when it intersects with criminal behavior. As organizations strive to ensure safe
environments and promote respect among employees, the role of employers in handling
allegations of harassment that also involve potential criminal conduct becomes paramount. This
article explores the legal obligations of employers in such situations, the implications for
workplace policies, and the importance of balance in addressing both victim protection and the
rights of the accused.
Defining Harassment and Criminal Behavior
Harassment in the workplace can take many forms, including verbal abuse, intimidation,
unwanted advances, or other conduct that creates a hostile environment. In some cases,
harassment can escalate into criminal behavior, such as sexual assault, stalking, or threats of

violence. This distinction is crucial; while all harassment can be detrimental to workplace morale
and safety, instances involving criminal behavior introduce a layer of complexity that requires
immediate and careful attention from employers.
Legal Framework Governing Employer Responsibilities
In Ontario, Canada, the legal framework governing workplace harassment and the obligations of
employers is outlined in several key statutes, including the Occupational Health and Safety Act
(OHSA) and the Ontario Human Rights Code (OHRC). Employers are required to take all
reasonable steps to prevent and address harassment, particularly when it involves criminal
conduct.
1. Duty to Maintain a Safe Workplace: Under the OHSA, employers have a general duty to
ensure that their workplace is free from hazards, which includes psychological hazards such as
harassment. This obligation extends to taking action when harassment escalates into criminal
behavior. Employers must not only create policies that prohibit harassment but also implement
procedures for reporting and investigating allegations.
2. Policies and Procedures: Employers are mandated to have clear policies that outline what
constitutes harassment and the procedures for addressing complaints. When it comes to
accusations involving criminal behavior, policies should state the process for reporting such
incidents to the appropriate authorities. Employers should also ensure that employees are made
aware of these policies through training and regular communication.
3. Thorough Investigations: When a harassment complaint involves potential criminal conduct,
employers must conduct a thorough and impartial investigation. While the employer’s
investigation does not replace the role of law enforcement, it is essential to gather facts and
assess the situation's seriousness. Investigators should be trained to handle these sensitive matters
with discretion, ensuring that both the complainant and the accused are treated fairly throughout
the process.
4. Reporting to Authorities: If harassment involves behavior that constitutes a criminal act,
employers have a legal obligation to report these incidents to law enforcement. Failure to do so
can expose the employer to liability should further harm occur. While the employer can conduct
internal investigations, they must cooperate fully with law enforcement agencies and refrain
from hindering any criminal investigations.
Supporting Victims While Respecting Rights
One of the fundamental obligations of employers upon receiving a harassment complaint is to
provide support to the victim. This may include:
1. Immediate Action: Employers need to take immediate actions to ensure the safety of the
victim and potentially affected co-workers. This can involve temporary reassignment,
implementing safety measures, or closely monitoring the situation until resolutions are achieved.
It is vital that employees feel safe and supported throughout the process.

2. Access to Resources: Employers should provide access to resources for victims, such as
counseling services, legal assistance, or support groups. This support can help individuals
process their experiences and navigate the complex emotions associated with harassment and
criminal behavior.
3. Confidentiality: While it is essential to conduct thorough investigations, maintaining
confidentiality is crucial. Employers must protect the identities of involved parties to the extent
possible, only disclosing information to those who need it for investigative purposes. This helps
create a safe space for individuals to report incidents without fear of public exposure.
Protecting the Accused
While victim support is paramount, employers must also uphold the rights of the accused during
investigations. This involves:
1. Fair Investigation Process: The employer must ensure that the investigation is impartial and
that the accused person has an opportunity to respond to the allegations. Providing a fair process
is essential to avoid wrongful assumptions and protect the integrity of the investigation.
2. Presumption of Innocence: Just as in criminal proceedings, the principle of innocent until
proven guilty applies within the workplace. Employers should avoid making premature
judgments about the accused's character or conduct until the investigation is complete.
3. Avoiding Retaliation: Companies must develop strict policies against retaliation for those who
report harassment and those who cooperate in investigations. Retaliation can manifest in various
forms, including demotion, exclusion from work assignments, or hostile treatment in the
workplace, and can lead to further legal complications for employers.
The Importance of Training and Education
To effectively manage harassment cases involving criminal behavior, employers should invest in
training and education for all employees, including management and human resources personnel.
Training should cover:
1. Recognizing Harassment: Employees should learn to recognize and understand different forms
of harassment, especially those that may escalate into criminal behavior. This knowledge
empowers individuals to speak up and report incidents.
2. Reporting Mechanisms: Employees need to be educated on how to report harassment and
potential criminal behavior without fear of repercussions. Ensuring clarity in reporting channels
fosters a culture of trust and accountability within the workplace.
3. Response Protocols: Training should include specific protocols regarding how to respond to
allegations of harassment involving criminal behavior. This includes knowing when to involve
law enforcement, how to conduct investigations, and what resources are available for employees.

In Ontario
In a landscape where the importance of workplace safety and employee rights continues to grow,
employer obligations regarding harassment involving criminal behavior are critically important.
As outlined in various legal frameworks, employers have a duty to maintain a safe work
environment, conduct thorough investigations, support victims, and uphold the rights of the
accused. By implementing robust policies, providing education and training, and fostering open
communication, employers can navigate the delicate balance of addressing harassment while
protecting all parties involved. Ultimately, a proactive approach not only protects employees but
contributes to a healthier workplace culture where individuals feel safe, respected, and valued.

Honda Canada Inc. v. Keays, 2008 SCC 39
In the case of Honda Canada Inc. v. Keays, the Supreme Court of Canada addressed the wrongful
dismissal of Kevin Keays, an employee who had worked for Honda for over 14 years before being
terminated due to concerns about his absences stemming from chronic fatigue syndrome (CFS). Despite
being placed in a disability accommodation program, Honda became increasingly concerned with the
frequency of his absences and the vague nature of the medical notes provided to justify those absences.
When Keays refused to meet with Honda's occupational doctor for clarification of his condition's
implications for his work, Honda terminated his employment. Keays subsequently sued for wrongful
dismissal, leading to a trial court ruling in his favor that initially provided him with a notice period of 15
months, which was later extended to 24 months due to the manner of his termination.
The trial court recognized that Honda's handling of Keays’ dismissal displayed bad faith, which justified
additional damages for the distress caused by the termination process. However, the Court of Appeal
upheld the finding of wrongful dismissal but reduced the punitive damages awarded from $500,000 to
$100,000, asserting that the initial award was excessively high and not entirely supported by the evidence.
The appellate court also modified the costs awarded to reflect a more standard scale. While both courts
acknowledged Honda's wrongful dismissal of Keays, they disagreed on the extent of the damages related
to the manner of dismissal and the appropriateness of punitive damages.
Ultimately, the Supreme Court ruled that the appeal should be allowed in part, affirming the notice period
of 15 months while overturning the additional damages and punitive damages awards. The Court
emphasized that while the employer has a duty of good faith during dismissal, the specifics of the case did
not demonstrate egregious conduct warranting punitive damages. The ruling clarified the factors that
courts should consider in wrongful dismissal cases and established that any award for damages related to
the manner of dismissal must directly reflect the actual damages, rather than extending the notice period,
thus reshaping the jurisprudence surrounding wrongful dismissal in Canada.

Capital Pontiac Buick Cadillac GMC Ltd v Coppola, 2013 SKCA 80
In Capital Pontiac Buick Cadillac GMC Ltd. v. Coppola, the Saskatchewan Court of Appeal reviewed a
wrongful dismissal case where the respondent, Sergio Coppola, was terminated by his employer after 22
months of service. Initially hired as a Fleet Manager, Coppola quickly advanced and took on additional
responsibilities as Finance Manager, excelling in his role. He was given a two-week layoff notice under
the pretext of tenure, being the most junior of three finance managers. Later, he discovered that an
employee from his former employer had made damaging allegations—namely, that he was fired for
causing a trade-in vehicle to go missing—leading to reputational harm. Despite Coppola's lawyer
requesting clarification, the employer remained silent, prompting Coppola to file a wrongful dismissal
claim.
At trial, the judge awarded Coppola six months’ pay in lieu of notice, $1,650 for loss of vehicle benefits,
and $20,000 in aggravated (moral) damages, plus prejudgment interest. The Court of Appeal upheld the
damages for notice and moral harm, finding that the trial judge had appropriately applied the Bardal
factors, which include the nature of the job, length of service, age, and job prospects. Although the
six-month notice was at the upper end of the reasonable range for such cases, it was still within accepted
bounds and thus not unreasonable. The employer’s false and damaging accusations, coupled with its poor
conduct in handling the dismissal, justified the moral damages.
However, the Court of Appeal did reduce the prejudgment interest awarded. The long delay in bringing
the case to trial—almost eight years—was largely attributed to Coppola, with no compelling justification
for the lag. Consequently, the Court deemed it unjust to award full pre-judgment interest and reduced it by
50%. The Court dismissed the rest of the employer’s appeal and made no order regarding appeal costs,
acknowledging mixed success on both sides.

Porta v. Weyerhaeuser Canada Ltd.

In Porta v. Weyerhaeuser Canada Ltd., the plaintiff, Mark Porta, brought an action for wrongful dismissal
against his employer, Weyerhaeuser, following his termination without notice after 17 years of service. He
was accused of taking wood from the mill site without proper authorization and acting dishonestly during
an internal investigation. Weyerhaeuser argued that Porta's actions, including the alleged theft and
dishonesty, amounted to just cause for dismissal. Porta, however, claimed he had oral permission to take
the wood, believed it was waste material, and followed prior practices that were informally accepted at
the mill. He also pointed out issues in management's handling of policies and alleged that his dismissal
was influenced by a strained relationship with his supervisor, which had been documented in performance
evaluations months prior to the incident.
The case revolved around conflicting accounts regarding whether the wood Porta took was merchantable
or not, whether there was a written or enforced policy at the time, and whether Porta's actions breached
company trust to the extent that termination was justified. While Weyerhaeuser relied on an alleged local
sales policy dated April 1997, the court found insufficient evidence that this policy was in effect or
communicated properly at the time of Porta’s dismissal. Testimony showed inconsistencies, and even
supervisors who claimed knowledge of the policy failed to refer to it during their original investigations
into Porta’s conduct. Furthermore, historic practices allowed supervisors to give oral permission to
remove waste wood, blurring the clarity of Porta's alleged wrongdoing.
Ultimately, the court found that while Porta may have exercised poor judgment, Weyerhaeuser failed to
meet the legal threshold for just cause dismissal. The employer did not provide clear evidence of serious
misconduct or dishonesty that would justify termination without notice. The court emphasized the need
for a contextual analysis of alleged dishonesty in line with the McKinley v. BC Tel decision. As a result,
Porta was entitled to damages for wrongful dismissal, and the employer’s claim of just cause was rejected
due to insufficient and inconsistently applied policies, a lack of proper investigation, and an overstatement
of the seriousness of Porta’s conduct.

Gismondi v. City of Toronto

In Gismondi v. City of Toronto, the case arose following the amalgamation of several municipalities into
the new City of Toronto. The plaintiff, Mr. Gismondi, was previously employed by the former City of
North York as Director of Roads and Sidewalk Operations. Due to the restructuring, management staff
were required to reapply for a reduced number of positions. Gismondi applied for several roles but was
unsuccessful and was subsequently dismissed. He received an 80-week severance package and sued for
wrongful dismissal, also seeking reinstatement on the basis that he was an office-holder with special
entitlements. The trial judge dismissed the reinstatement claim but awarded Gismondi 116 weeks' pay,
partly due to the employer’s alleged bad faith conduct under the Wallace Principle.
The Court of Appeal overturned the trial judge’s decision to extend the notice period. It held that while
the job competition process may have been poorly handled and “sloppy,” it lacked the necessary malice,
intent, or blatant disregard required to justify a longer notice period under the Wallace doctrine. The
directors involved in the hiring process were found to be well-intentioned, and their actions did not meet
the threshold for bad faith or unfair treatment warranting compensation. The Court emphasized that
merely imperfect or bureaucratically flawed procedures, without more egregious conduct, did not justify
an extension of the notice period.
Furthermore, the Court dismissed the cross-appeal regarding reinstatement. It found that Gismondi was
not an “office-holder” under the Municipal Act and that no special resolution from Council was necessary
to terminate his employment. His role was deemed to fall within middle management, and the City’s
Chief Administrative Officer had the authority to terminate his employment under the municipal
restructuring by-laws. In conclusion, the Court directed that Gismondi should receive the original
severance package offered by the City and not the extended compensation awarded by the trial judge.

Jessen v. CHC Helicopters International Inc., 2006 NSCA 81

In Jessen v. CHC Helicopters International Inc., the respondent, Wendy Jessen, was terminated without
cause after working for the appellant company for about two and a half years. She had held a senior
position as Assistant Base Manager and was well-regarded for her work. Her dismissal followed a
conversation she had with the company president, where she relayed customer concerns about leadership
at the Halifax base. This conversation was shared with her immediate supervisor, who subsequently
dismissed her. Jessen filed a wrongful dismissal claim, and a jury awarded her four months’ notice plus an
unprecedented additional 48 months due to bad faith in the dismissal process.
CHC Helicopters appealed the 48-month extension as excessive, while Jessen cross-appealed the
deduction of her earnings from that extended notice period. The Nova Scotia Court of Appeal found that
although CHC’s conduct—including failing to provide a reference letter and delaying employment
documentation—was in bad faith, it did not rise to the exceptional level required to justify such an
extraordinary award. The Court ruled the 48-month extension was "palpable and overriding error" and
"shocked the conscience" of the court, especially as Jessen’s employment was relatively short, and similar
cases awarded significantly less (typically no more than 12 months for Wallace damages). The appeal was
allowed, and the extended notice was reduced to nine months.
Regarding the cross-appeal, the Court sided with Jessen. It held that Wallace damages—those awarded for
the bad faith manner of dismissal—should not be subject to reduction for mitigation (such as income
earned after termination). This aligned with reasoning in the Prinzo case and the Supreme Court’s view in
Wallace that intangible injuries from bad faith conduct merit compensation even if the employee finds
new work. The cross-appeal was allowed, and the matter was resolved without a retrial due to the
significant time since the dismissal and the logistical challenges of reconvening the parties.

Magnan v. Brandt Tractor Ltd., 2008 ABCA 345

In Magnan v. Brandt Tractor Ltd., the Alberta Court of Appeal dealt with a wrongful dismissal case where
Leo Magnan, a long-time employee of Brandt, challenged his termination under the company’s unwritten
mandatory retirement policy. Magnan had worked for Brandt and its predecessor companies for 38 years
and was informed in late 2004 that he would be expected to retire at the end of that year, shortly after
turning 65. Although he initially complied, he later asserted he had no intention of retiring and that the
company had constructively dismissed him by changing his duties and hiring his replacement. Magnan
filed a wrongful dismissal claim, arguing the retirement policy was discriminatory under Alberta's Human
Rights Code.
At trial, the judge found that Magnan had indeed been constructively dismissed but limited his damages to
three months' wages based on the assumption that Magnan intended to retire on March 31, 2005. On
appeal, the Alberta Court of Appeal ruled that this assumption was not pleaded or raised during trial and
thus was unfair. The Court found that Magnan did not intend to retire on that date and revised his
damages award to reflect an 18-month notice period, minus deductions for working notice, vacation, and
the trial award, resulting in an additional seven months of damages. The Court also rejected the
employer’s cross-appeal argument that Magnan failed to mitigate his losses by not returning to work
when offered, citing the employer's unaddressed accusations of dishonesty and the breakdown in their
relationship.
Finally, the Court addressed the issue of Wallace damages—extra damages for bad faith conduct during
dismissal—and declined to award them, stating that although Brandt was mistaken about its legal rights
under human rights legislation, there was no evidence of bad faith or malicious intent. The Court
emphasized that mere ignorance of the law did not justify the heightened damages and that the employer’s
conduct, while misguided, lacked the malice required for such an award. The appeal was allowed, and the
cross-appeal dismissed.

Kitzman v. Babcock & Wilcox Canada Ltd., 2007 ONCA 536 (CanLII)

In the case Kitzman v. Babcock & Wilcox Canada Ltd., the respondent, Robert Kitzman, was terminated
from his employment with the appellant company. The trial judge concluded that the employer did not
have just cause to dismiss Kitzman. Although the judge did not directly reference the Supreme Court's
decision in McKinley v. BC Tel, which requires assessing whether misconduct fundamentally ruptures the
employment relationship, the Ontario Court of Appeal found that the trial judge's factual findings still
supported the conclusion that the employer did not meet this legal standard.
The trial judge analyzed Kitzman's involvement in certain internal transactions, his disciplinary record,
and the company’s policies and practices. He ultimately found that any breaches of policy were not
consistent, nor were they a result of willful or negligent misconduct by Kitzman. The Court of Appeal
upheld these conclusions and agreed there was no sufficient factual basis to justify termination for cause.
Consequently, the appeal against the dismissal of the employer's counterclaim was rejected.

However, the Court of Appeal diverged from the trial judge on the issue of Wallace damages—extra
compensation awarded for bad-faith conduct during termination. The trial judge had based his award on
findings of a conspiracy within the company to remove Kitzman and alleged malicious motives behind
the employer's counterclaim. These serious allegations were neither pleaded nor addressed during the
trial, which denied the employer an opportunity to respond. As a result, the Court of Appeal set aside the
Wallace damages but upheld the rest of the decision, awarding Kitzman partial costs on appeal.

Remedies in the Context of Wrongful Dismissal

The 2007 CanLII case summary titled “Remedies in the Context of Wrongful Dismissal” provides an
in-depth analysis of the types of damages that may be awarded in wrongful dismissal cases. It begins by
emphasizing the significance of understanding available remedies early in the litigation process, both for
strategic planning and potential settlement. The paper explains that wrongful dismissal claims hinge not
on the dismissal itself but on whether the dismissal was without reasonable notice or cause. Courts rarely
enforce reinstatement; instead, remedies typically focus on financial compensation based on the period of
reasonable notice.
The document categorizes compensable damages into several heads: salary and wages, bonuses, benefits,
pensions, and stock options. Each category is subject to interpretation based on employment contract
terms and past practice. Courts aim to place the employee in the financial position they would have been
in had the employer provided proper notice. For instance, regular bonuses may be recoverable if they are
an integral part of the employment contract. Employees may also claim for lost benefits such as insurance
or pension contributions. Importantly, the duty to mitigate is emphasized—employees must actively seek
new employment, and any income earned during the notice period may offset damages.
The paper also addresses Wallace damages, stemming from bad faith in the manner of dismissal, as
introduced in Wallace v. United Grain Growers. Such damages may extend the notice period if the
employer's conduct is deemed unfair or insensitive. However, courts, particularly in Saskatchewan, have
applied this remedy cautiously, often reducing excessive awards on appeal. The document concludes with
a discussion on the Pre-Judgment Interest Act, explaining how interest on damage awards should be
calculated and its implications for both employers and employees. The overall message is that wrongful
dismissal damages are nuanced, contract-specific, and must be approached with a careful understanding
of the legal principles and current case law.

Introducing the Damages Formerly Known as Wallace
The 2008 document titled "Introducing the Damages Formerly Known as Wallace" explores the
development and transformation of “Wallace damages,” a legal concept that originated from the 1997
Supreme Court decision in Wallace v. United Grain Growers Ltd. In this case, the Court established that if
an employer acts in bad faith during the dismissal of an employee—by being dishonest, misleading, or
unduly insensitive—the employee may be entitled to an extension of their notice period as a form of

compensation for the manner of dismissal. These additional damages came to be known as “Wallace
damages” or the “Wallace Bump.” They were rooted in the principle that employers owe a duty of good
faith in the manner of dismissal, although this duty was not strictly defined.
The document discusses the significant case of Evans v. Teamsters Local Union No. 31 (2008), where the
Supreme Court emphasized the duty of a wrongfully dismissed employee to mitigate losses, even if that
meant returning to the same employer who dismissed them. The majority held that unless it would be
objectively unreasonable, an employee is expected to consider such offers. However, Wallace damages
were deemed exempt from this duty to mitigate, as they compensate for the manner of dismissal
itself—not just the loss of income. Justice Abella, dissenting, argued that subjective factors such as
personal dignity and past conflict should also play a stronger role in evaluating whether re-employment is
reasonable.
Finally, in Honda Canada Inc. v. Keays (2008), the Supreme Court reconsidered Wallace damages and
clarified that damages for the manner of dismissal should be awarded under the traditional contract
damages principle established in Hadley v. Baxendale. The Court moved away from using an extended
notice period as the basis for calculating these damages. Instead, employees must now prove that the
employer’s conduct during dismissal caused mental distress that was foreseeable when the contract was
formed. This case also emphasized the need to avoid overlapping compensatory and punitive damages.
While this decision reframed Wallace damages, it did not eliminate them; rather, it integrated them into a
broader, more coherent legal framework.

Taking the Risk Out of Termination:

The 2011 article "Taking the Risk Out of Termination: An Enterprise Risk Management Analysis of the
Normative System of Employment Standards Challenged by Honda v. Keays" by Ryan Henry Edmonds
critically examines how the Supreme Court of Canada’s decision in Honda v. Keays reshaped wrongful
dismissal law. The author argues that this ruling effectively dismantled the protections previously offered
by Wallace v. United Grain Growers, which had introduced a system of "Wallace damages" to address bad
faith in dismissals. These damages functioned as a form of reflexive regulation, encouraging employers to
improve termination practices by attaching legal and reputational risks to poor conduct. The paper argues
that under Wallace, this regulatory system fostered higher employment standards through the implicit
threat of litigation, which employers tried to avoid by treating employees more fairly.
Edmonds explores the theoretical frameworks of centralized versus reflexive regulation and Enterprise
Risk Management (ERM) to analyze how employers respond to legal risks. Reflexive regulation doesn’t
use sanctions but instead influences behavior by injecting reputational or operational risk into the
decision-making process. When paired with ERM—a business strategy that integrates financial,
operational, and strategic risk—Wallace-style damages created a corporate environment where wrongful
dismissal risks could impact a company's internal processes and public image, motivating employers to
avoid misconduct. The uncertainty surrounding Wallace damages, while criticized for arbitrariness,
paradoxically encouraged better employer conduct and litigation avoidance strategies, leading to a
self-sustaining rise in normative employment standards.

However, the Keays decision reversed much of this progress. The Supreme Court returned to the
traditional Hadley v. Baxendale contractual framework, requiring proof of actual damages rather than
presuming harm from bad faith termination. Edmonds argues this stripped away the regulatory effect of
Wallace damages and weakened employee protections, particularly by raising the evidentiary bar for
plaintiffs and discouraging lawyers from pursuing claims. Furthermore, courts began folding tort claims
for emotional distress and intentional infliction of harm into the limited remedies under Keays, effectively
blocking access to more meaningful compensation. The paper concludes that the shift rebalances power
toward employers and undermines the dignity and security of non-unionized workers in Canada.

Recent Trends in Wrongful Dismissal Law, 2002 CanLIIDocs 529
The document “Recent Trends in Wrongful Dismissal Law” explores significant legal developments in
the area of wrongful dismissal, focusing on how Canadian courts have expanded employer obligations
during terminations. Central to this shift is the Supreme Court of Canada’s landmark decision in Wallace
v. United Grain Growers, which emphasized the employer’s duty to act in “good faith” and “fair dealing”
during dismissals. This duty now allows for an extension of the notice period when an employer acts in
bad faith, even in the absence of a separate actionable wrong. The paper reviews how traditional factors
such as age, length of service, and job availability are still key in determining notice periods, but now
courts also consider emotional harm and employer conduct when calculating damages.
The paper also analyzes how various scenarios—such as making false allegations against the employee,
not providing references, inducing an employee to leave secure employment, or failing to allow an
employee to address complaints—can all amount to bad faith and justify increased notice periods.
Specific case examples illustrate how courts have awarded extended notice periods or direct damages in
such circumstances. The paper discusses how merely being insensitive is not enough for additional
damages; the employer’s behavior must rise to a level of unfairness, untruthfulness, or unduly insensitive
conduct. Moreover, if the employer’s actions go beyond bad faith and amount to an independent
tort—such as the intentional infliction of mental suffering—separate damages may also be awarded.
In conclusion, the paper highlights the growing responsibilities of employers during terminations and the
expanding remedies available to wrongfully dismissed employees. The courts are increasingly willing to
scrutinize the manner of dismissal and provide compensation for emotional distress and mental suffering,
particularly where employers have failed to communicate transparently or treated employees unfairly. The
Prinzo case, for example, illustrates that employers who engage in harassing behavior or manipulative
tactics during or before dismissal may be liable for significant damages. These legal trends signal a move
toward a more employee-protective approach in wrongful dismissal law across Canada.

Carleton Road Industries Association v. Sanford, 2015 NSCA 95

In Carleton Road Industries Association v. Sanford, 2015 NSCA 95, the Nova Scotia Court of Appeal
considered an appeal by the appellant, Carleton Road Industries Association, regarding two interlocutory

motions. The respondent, Ms. Rhonda Sanford, brought a wrongful dismissal claim against her former
employer, alleging emotional and psychological harm due to the circumstances of her termination. The
lower court judge allowed Sanford’s motion to compel a witness to answer certain questions during
discovery and struck only one part of Carleton Road’s motion to dismiss—specifically, the claim for
negligent infliction of mental suffering. Carleton Road challenged the decision, particularly the survival
of the Wallace damages claim and the claim for intentional infliction of emotional harm.
On appeal, Carleton Road raised several issues, including that the motions judge failed to allow further
submissions as agreed, did not properly apply legal standards to the claims for Wallace damages and
intentional infliction of harm, and failed to explicitly rule on one of the motions. The Court found that
although the judge did not provide sufficient written reasons regarding the intentional infliction claim, he
did clarify his decision through subsequent correspondence and finalized orders. The Court also found
that the statement of claim, while not perfectly drafted, sufficiently outlined facts to support the claims at
issue, meeting the minimum legal threshold to survive a motion to strike. The Court emphasized that the
objections during discovery lacked merit and were unnecessarily obstructive.
Ultimately, the Nova Scotia Court of Appeal dismissed the appeal. It concluded that while the motions
judge made some procedural errors, such as not allowing additional submissions on one motion, these did
not result in any injustice. The surviving claims were deemed legally tenable, and the discovery questions
were found to be relevant. The Court granted leave to appeal but upheld the original decision, awarding
Ms. Sanford $2,500 in costs.

Sklar v. PCL Constructors Canada Inc., 2012 ONSC 2923 (CanLII)
In the case of Sklar v. PCL Constructors Canada Inc., the plaintiff, Steven Sklar, filed a motion to amend
his original statement of claim for wrongful dismissal to include a $100,000 claim for moral or punitive
damages. He alleged that his employment was terminated in bad faith after he refused to engage in
unethical conduct, specifically a kickback scheme in violation of PCL’s Code of Conduct. Sklar claimed
that his dismissal was not genuinely due to a lack of work, as stated by PCL, but rather orchestrated by
co-workers he refused to cooperate with. He argued that PCL failed to investigate the matter or consider
his concerns, which he believed constituted bad faith.
The Ontario Superior Court, however, rejected Sklar’s motion, finding that the proposed amendments did
not disclose a legally tenable claim. The Court reasoned that in Canada, employers are not required to
provide a good faith reason for dismissal unless specified in the contract. Sklar's original wrongful
dismissal claim already included damages for termination without cause, and the Court concluded that the
additional allegations about the motivation behind his dismissal or any failure to investigate did not
establish separate grounds for moral or punitive damages. There was no evidence of actual psychological
harm or any bad faith conduct during the dismissal process that could support such damages.
Furthermore, the Court held that a claim for punitive damages requires an independent actionable wrong,
which Sklar failed to establish. His reliance on implied duties—such as the duty to protect employees who
comply with a code of conduct or to properly investigate internal allegations—was not supported by legal

precedent. These were not recognized legal obligations under employment law. As a result, the motion to
amend the claim was dismissed, and Sklar was ordered to pay PCL’s legal costs amounting to $12,969.50.

Clark v. BMO Nesbitt Burns Inc., 2008 ONCA 663 (CanLII)
In Clark v. BMO Nesbitt Burns Inc., the Ontario Court of Appeal considered an appeal from the
employer, BMO Nesbitt Burns, following a wrongful dismissal claim brought by Richard Clark. Clark
had worked as an investment advisor for the bank for 17 years when he was terminated shortly after being
criminally charged with sexual assault, and shortly before the announced closure of his branch. At trial,
Clark was awarded 18 months' pay in lieu of notice, $90,000 for the lost opportunity to sell his book of
business, and additional “Wallace damages” for bad faith conduct by the employer during dismissal. The
employer appealed, arguing that the trial judge erred in awarding these damages.
The Court of Appeal upheld the 18-month notice period, finding no error in how the trial judge calculated
Clark’s annual income. The Court also affirmed the $90,000 award for the lost opportunity to sell his
book of business, reasoning that had Clark been given working notice, it was reasonably probable he
could have sold his book under the employer’s internal policies. The Court rejected the employer’s
argument that Clark had failed to mitigate his damages, emphasizing that at the time of dismissal, Clark
was presumed innocent of the criminal charges, and his efforts to pursue an alternative business in athletic
training were deemed reasonable.
However, the Court of Appeal allowed the appeal in part by setting aside the Wallace damages, holding
that they amounted to a double recovery. Since the trial judge had already compensated Clark for the lost
opportunity to sell his book of business, awarding Wallace damages based on the same conduct was
redundant. The rest of the damages stood, and the Court declined to award costs for the appeal,
acknowledging that both parties had partial success.

Hallett v. R.A. Murray International Limited, 2019 NSSC 288 (CanLII)
In Hallett v. R.A. Murray International Limited, 2019 NSSC 288, the applicant, Dawn Hallett, sought
damages following her dismissal after thirty-two years of service with the respondent company. Ms.
Hallett began as a typist and rose to office manager. In 2017, she was given a working notice of seven
months and a lump sum payment equivalent to ten months’ salary, totaling seventeen months' notice. She
claimed entitlement to thirty months of notice, damages for loss of bonuses, Wallace damages for bad
faith termination, and compensation for retirement funds she believed had been promised.
Justice Moir evaluated Ms. Hallett’s role, determining she was a middle manager rather than a senior
executive. While she had long standing service and was in her sixties at the time of dismissal—factors
supporting a longer notice period—her responsibilities did not warrant the thirty-month notice she
claimed. The court concluded she was entitled to twenty-two months’ notice in total, awarding her an

additional five months' salary ($27,000). Ms. Hallett’s claims for bonuses were dismissed, as the company
had not issued substantial bonuses in recent years, and its business was in decline.
Ms. Hallett also claimed entitlement to retirement funds based on a conversation with Mr. Murray and her
inclusion as a beneficiary in a family trust. The court rejected this claim, finding the evidence insufficient
to establish any contractual promise of retirement compensation. The trust did not guarantee any benefits,
and the company had never offered pensions. Additionally, the court found no basis for Wallace damages,
as there was no proof of bad faith in the dismissal process. The employer had handled the termination
transparently and respectfully, providing generous notice.

Elgert v. Home Hardware Stores Limited, 2010 ABQB 65 (CanLII)
In Elgert v. Home Hardware Stores Limited, the plaintiff, Daniel Elgert, was terminated from his
employment following allegations of sexual harassment made by a subordinate. The central issue before
the Court was whether there was sufficient evidence to allow the jury to consider awarding aggravated
(formerly Wallace) and punitive damages. The defendants argued that there was no basis for either claim,
asserting that their conduct in the investigation and dismissal process was fair, reasonable, and in good
faith.
Justice Donald Lee, however, found that there was indeed sufficient evidence to allow the jury to
deliberate on both heads of damages. The Court reviewed precedents and legal principles from cases such
as Keays v. Honda Canada Inc. and Whiten v. Pilot Insurance Co. to determine that punitive damages are
awarded only in exceptional cases involving harsh, vindictive, or high-handed conduct. The Court noted
several concerning elements in Home Hardware's actions, including a flawed and biased investigation,
refusal to allow legal counsel during key meetings, and failure to explore alternative explanations or
motives for the allegations. These collectively could meet the threshold for both punitive and aggravated
damages.
Furthermore, the Court emphasized that aggravated damages are compensatory and may be appropriate
where an employee suffers mental distress beyond typical hurt feelings from dismissal. The evidence
presented suggested that Mr. Elgert experienced humiliation, trauma, and professional hardship, and that
Home Hardware should have reasonably foreseen this at the time of his termination. Consequently, the
judge concluded that both aggravated and punitive damages should be considered by the jury, leaving it
up to them to determine the employer's liability and the extent of the plaintiff’s suffering.

Bouma v. Flex-N-Gate Canada Co., 2005 CanLII 10540 (ON SC)
In the case of Bouma v. Flex-N-Gate Canada Company, the Ontario Superior Court of Justice addressed
issues concerning the calculation and clarification of damages following an earlier decision regarding the
wrongful dismissal of the plaintiff, Grant Bouma. After issuing the initial reasons in December 2004, the
court was asked by counsel to clarify aspects of the damages through a conference call held on March 24,
2005. Justice Gates confirmed that Bouma's annual salary in the year 2000 was $101,500. The court had

initially determined that Bouma's common law damages for a 20-month notice period, after deducting his
mitigation earnings, amounted to $39,568.47.
However, Bouma’s entitlement under the Employment Standards Act (ESA), which included eight weeks
of termination pay and 22 weeks of severance pay, totaled $83,653—an amount greater than the common
law damages. As such, the court held that Bouma was entitled to the higher ESA entitlement of $83,653.
Additionally, the court awarded Bouma $34,000 in “Wallace damages” for the bad faith manner in which
his dismissal was handled. The judge, following the reasoning in Prinzo v. Baycrest Centre for Geriatric
Care, emphasized that Wallace damages were not subject to mitigation, given the intangible injuries
caused by the employer’s egregious conduct.
Furthermore, the court awarded an additional $15,000 in combined aggravated and punitive damages due
to the post-termination behavior of the employer. Justice Gates acknowledged that the employer's actions
warranted separate compensation due to their harmful impact on the plaintiff's dignity and emotional
state. The judgment clarified that the damages were intended to compensate for both tangible financial
loss and intangible personal harm. The final resolution of costs, particularly counsel fees, remained open
for further discussion if not resolved between the parties.

Beth v. Advanced Micro Devices, Inc., 2008 ONCA 686 (CanLII)
In Beth v. Advanced Micro Devices, Inc., the Ontario Court of Appeal reviewed a wrongful dismissal
case involving Donavan Beth, a 30-year-old employee who had been recruited from a management-track
position at IBM to work for the appellant company. After 2.5 years of service in a senior management role
with significant responsibilities and a salary of $102,000, Beth was terminated during a company
downsizing. He sued for wrongful dismissal, originally claiming 7 months’ notice but later amending his
claim to 10 months, having found new employment 10 months after termination. Both parties streamlined
the trial by agreeing on facts and presenting only Beth as a witness, and it was undisputed that Beth took
reasonable steps to mitigate his damages.
The trial judge found Beth to be a credible and sincere witness and concluded that the employer had
breached its obligation of good faith and fair dealing in the manner of the dismissal. Although Beth did
not claim "Wallace damages" for bad faith, the judge extended the notice period to reflect the employer’s
conduct. As a result, Beth was awarded damages equivalent to 10 months’ salary in lieu of notice.
However, on appeal, it was acknowledged that awarding Wallace damages without a specific claim was
an error in law.
The Court of Appeal, applying the principles in Minott v. O’Shanter, held that while the trial judge erred
in awarding Wallace damages without a pleading, the overall notice period was still within a reasonable
range based on the Bardal factors. The Court inferred that the additional time awarded for Wallace
damages was likely one month and thus reduced the notice period from 10 months to 9 months. The
judgment of the lower court was accordingly modified, and counsel were invited to make written
submissions regarding the issue of costs within seven days of the ruling.

Yanez v. Canac Kitchens, 2004 CanLII 48176 (ON SC)
In Yanez v. Canac Kitchens, the Ontario Superior Court of Justice dealt with the wrongful dismissal of
Jorge Yanez, a long-time employee who had worked at Canac Kitchens for 15.5 years. Yanez, who had
served as a Production Team Leader, was terminated without cause due to a business downturn. The court
had to determine the reasonable notice period he was entitled to and whether he was owed additional
“Wallace damages” for bad faith conduct in the manner of dismissal. The court found that Yanez's
supervisory role and lengthy tenure warranted a 12-month reasonable notice period, amounting to
$69,566.52.
Regarding Wallace damages, the plaintiff alleged that the employer acted in bad faith, particularly by
initially offering less than the statutory minimum severance and requiring a release. However, the court
found that the employer’s mistake in calculating severance was not intentional and that once discovered,
it was promptly corrected with additional payments made. The court praised Canada's efforts in
conducting a respectful and organized dismissal process, including rehearsals and the provision of
translators. As a result, the court concluded that the employer did not act in bad faith or engage in the kind
of unfair conduct that would justify Wallace damages.
The court also addressed the deduction of mitigation earnings and statutory payments from the common
law notice period. It affirmed that both mitigation income and Employment Standards Act payments
should be deducted from the total damages owed. Ultimately, after all deductions, the plaintiff was
awarded $34,639.49 plus interest. The judge also expressed concern over the routine and often
unwarranted assertion of Wallace claims in dismissal cases, warning that unmeritorious claims in future
may attract cost consequences.
Sanford v. Carleton Road Industries Association, 2014 NSSC 187 (CanLII)
In Sanford v. Carleton Road Industries Association, 2014 NSSC 187, the plaintiff, Rhonda Sanford,
brought an action against her former employer for wrongful dismissal, negligent infliction of emotional
harm, and intentional infliction of emotional harm. The case arose from workplace conflict in 2008,
where grievances were filed both by and against Sanford, culminating in her dismissal six months after
the board’s decision to terminate her. As part of the litigation process, Sanford sought to compel answers
during discovery from a board member, Catherine Savage, whose testimony had been interrupted due to
objections raised by the defendant regarding the relevance of certain questions.
Justice Moir held that the defendant's objections during discovery were not valid. He emphasized that the
plaintiff’s questions were relevant to the claims being made and that attempts by the defense to narrow the
scope of relevance using statutory defenses, such as limitation periods or the Volunteer Protection Act,
were not grounds to obstruct the discovery process. The judge ordered that the discovery resume, with
Savage required to answer the previously objected-to questions, and noted that obstruction of relevant
discovery would be addressed through cost sanctions regardless of the outcome of other motions.

Regarding the legal claims, Justice Moir dismissed the defendant’s motion to strike Sanford’s claim for
“Wallace damages,” stating that despite the evolution of case law post-Honda v. Keays, such damages
remain available where an employer breaches its duty of good faith in the manner of dismissal. However,
the court did strike Sanford’s claim for negligent infliction of emotional harm, aligning with the Ontario
Court of Appeal’s ruling in Piresferreira v. Ayotte, which held that there is no standalone tort in
employment law for such a claim. The intentional infliction of emotional harm claim, however, remained
live, and Justice Moir reaffirmed the plaintiff’s right to pursue it at trial.

McNevan v. AmeriCredit Corp., 2008 ONCA 846 (CanLII)
In McNevan v. AmeriCredit Corp., the plaintiff, Douglas McNevan, was terminated without cause after
13 months of service as an Assistant Vice-President at a call center. AmeriCredit offered him three
months’ pay in lieu of notice, which he rejected. He brought a wrongful dismissal claim, and the trial
judge awarded him 12 months' pay—six months based on the Bardal factors and an additional six months
as a Wallace extension due to the employer’s alleged bad faith in the manner of dismissal. The trial judge
found that AmeriCredit failed to provide performance feedback and handled the dismissal and
post-employment processes poorly, including mishandling documents and personal property.
On appeal, the Ontario Court of Appeal found that while the six-month base notice period was within a
reasonable range given McNevan’s role, age, and limited employment opportunities in his field, the trial
judge erred in awarding the Wallace extensions. The appellate court noted that the failure to warn of
performance issues is not a relevant factor in without-cause dismissals, and criticized the duplicative
reasoning behind the extended notice. Additionally, the court found that post-termination missteps—such
as issues with documents and return of property—did not rise to the level of bad faith warranting an
increased notice period.
The court also revised damages related to McNevan’s inability to participate in the Employee Stock
Purchase Plan, finding the trial judge’s speculative valuation inappropriate and opting instead for a more
realistic average market price approach. Ultimately, the appeal was allowed in part: the 12-month notice
period was reduced to six months, damages for mental distress under Wallace were dismissed (though one
judge dissented and would have awarded $30,000), and the damages relating to mitigation and the stock
plan were adjusted accordingly.
Pires v. Vectis Technologies Inc., 2009 BCSC 842 (CanLII)
In Pires v. Vectis Technologies Inc., 2009 BCSC 842, the plaintiff Dave Pires brought a wrongful
dismissal action against his former employer, Vectis Technologies Inc., and its representative Doug
Manness. The trial concluded in 2007, and Justice Baker issued reasons for judgment in 2008, finding that
Mr. Pires had been wrongfully dismissed and awarding him damages equivalent to three months and two
weeks’ salary, totaling $21,936.58. Vectis was also ordered to pay costs on Scale B. Despite being given
the opportunity, the defendants failed to submit any responses regarding quantum or costs until after
judgment had been issued.

Doug Manness later sought to re-open the trial to make late submissions on damages and costs, citing
stress and unawareness of deadlines as reasons for the delay. Justice Baker found these explanations
insufficient, highlighting the absence of communication from Maness for over seven months and his
failure to act despite receiving the plaintiff’s correspondence. The judge concluded that either Manness
intended to withdraw from the proceedings or was indifferent, and therefore denied the motion to reopen
the case.
Manness also argued that the plaintiff should not be awarded costs because the damage award fell within
the Provincial Court’s jurisdiction and that most of the trial was spent on issues related to Wallace
damages, which the plaintiff did not win. However, the court held that the action was appropriately
brought in the Supreme Court given the claims involved, including potential higher damages and the need
for procedural tools not available in lower courts. Justice Baker reaffirmed Mr. Pires' entitlement to both
damages and costs and dismissed the motion to reopen, further awarding the plaintiff costs related to that
motion.

Smith v. Casino Rama Services Inc., 2004 CanLII 4340 (ON SC)
In Smith v. Casino Rama Services Inc., the plaintiff, Susan Smith, was employed as a security guard and
later as a security officer from 1996 until her dismissal in August 1998. Smith had been on medical leave
due to undiagnosed health issues, later confirmed as multiple sclerosis. Despite receiving support from
her doctor and returning for a trial modified schedule, her symptoms forced her to leave work after an
hour. The next day, she failed to follow full internal procedures, such as reporting her condition to the
proper person and providing updated medical documentation. This procedural non-compliance led to her
termination, although the employer later abandoned any assertion of cause for dismissal.
The court found that Smith had been a good employee and was wrongfully dismissed in a manner that
was unreasonable and in bad faith. Despite her employment contract limiting notice to two weeks in
accordance with the Employment Standards Act, the court applied the principles from Wallace v. United
Grain Growers Ltd., finding that the employer’s actions constituted a “rush to judgment” and lacked
fairness and good faith. Justice Loukidelis ruled that the employer’s decision to terminate rather than
issue a warning was harsh and emotionally distressing to Smith, warranting additional compensation
under the Wallace doctrine.
As a result, the court awarded Smith a total of three months’ notice, inclusive of the two weeks already
paid, amounting to an additional $6,442.00 in damages. The court declined to deduct disability benefits
due to insufficient evidence that the premiums had been entirely employer-funded. While Wallace
damages were granted for bad faith, punitive damages were denied as the conduct did not rise to the level
of being malicious or high-handed. Judgment was entered in Smith’s favour, along with prejudgment
interest, and the parties were invited to submit further brief submissions regarding costs.

Lavallee v. Siksika Nation, 2011 ABQB 282 (CanLII)

In Lavallee v. Siksika Nation, 2011 ABQB 282, the Court addressed the issue of costs following a six-day
trial in which the plaintiff, Dr. Melvyn Lavallee, was awarded $92,450 in damages for wrongful
dismissal. The plaintiff's multiple claims—such as defamation, breach of representation, unlawful
interference, and “Wallace” damages—were largely unsuccessful, with only the claim for reasonable
notice being upheld. The Court declined to award costs to the defendants despite their partial success,
finding that unsuccessful claims did not significantly extend trial time, except for the defamation claim
which led to a one-day deduction in the plaintiff's cost entitlement.
Justice McIntyre rejected the defendants' request for separate costs for Mr. White, who had been
individually named but shared counsel and a common defence with the Siksika Nation. The Court
reasoned that Mr. White’s testimony would have been required regardless of his being named, and there
was no significant duplication of costs. The Court also refused to reduce costs further based on the
plaintiff’s degree of success on specific issues, maintaining that plaintiffs rarely succeed on all claims and
that the general rule—costs follow the event—should apply.
The plaintiff was awarded second counsel fees of $4,000 due to the complexity and importance of the
case. However, the Court denied the plaintiff’s request for an inflation adjustment due to lack of
supporting evidence. Pre-judgment interest was ordered to be calculated from the midpoint of the
reasonable notice period, aligning with Alberta precedent. Lastly, the Court made several determinations
regarding the formatting and content of the Judgment Roll and agreed with the defendants on certain
disputed items in the plaintiff’s Bill of Costs.

Patriquin v. Pan Pacific Holdings Ltd., 2006 BCPC 173 (CanLII)
In Patriquin v. Pan Pacific Holdings Ltd., 2006 BCPC 0173, the claimant, Liz Patriquin, brought a
wrongful dismissal action following her termination in March 2004. Initially self-represented, she claimed
she had been fired without cause. Before the scheduled trial, her counsel applied for production of
documents related to the manner of her dismissal, asserting that Ms. Patriquin intended to pursue Wallace
damages—additional damages for bad faith in the manner of dismissal. The defendant argued that such
documents were irrelevant unless the pleadings were amended, as they were not alleging “just cause” and
believed the trial would focus only on damages for dismissal without cause.
The claimant’s lawyer referenced Cappos v. Zurich Canada, asserting that issues may be raised at trial so
long as there is adequate notice, and highlighted that notice of intention to claim Wallace damages had
been provided months earlier. Despite the defense’s assertion that the manager responsible for the
termination, Mr. Indic, had passed away and could not refute the allegations, the court found that the
defendant was not taken by surprise. The judge noted that the claimant had shared a summary of the
relevant events as early as September 2005, and formal notice had been given by counsel in December
2005.
Ultimately, the court allowed the claimant to amend her pleadings to include claims of bad faith and
unfair dealing during dismissal. The defendant was also ordered to produce all documents relevant to the
manner of the dismissal, with a deadline set just before the trial. Although the death of the key managerial

witness posed potential evidentiary issues, the judge concluded it did not justify denying the claimant’s
right to amend her claim or access documents essential to supporting her Wallace damages argument.

Nasser v. ABC Group Inc., 2008 CanLII 4264 (ON SCDC)
In the case of Sultan Nasser v. ABC Group Inc., the plaintiff, Sultan Nasser, brought a claim against his
former employer for constructive dismissal, alleging he was forced to resign due to the abusive conduct of
the CEO during a heated confrontation. He claimed that this incident, combined with subsequent health
issues and advice from his physician, resulted in his decision to resign. The defendant, ABC Group Inc.,
sought a stay of the action pending a determination from the Workplace Safety and Insurance Appeals
Tribunal (WSIAT) as to whether the claim was barred under the Workplace Safety and Insurance Act,
1997, arguing that the alleged incident constituted a personal injury arising from the workplace.
Justice Day, at first instance, dismissed the motion to stay, finding that the plaintiff’s claim was not for
personal injury, but for breach of contract related to constructive dismissal. He emphasized that an
employment contract carries an implied term requiring employers to treat employees with civility, dignity,
and respect, referencing precedent to support this view. The claim focused solely on breach of contract
damages—such as loss of salary and benefits—and Wallace damages for bad faith in dismissal, rather
than on any benefits covered by the insurance scheme under the WSIA. As such, the court concluded that
the claim did not fall within the jurisdiction of the WSIAT.
Justice Ferrier of the Divisional Court upheld this ruling, agreeing there was no valid reason to doubt the
correctness of Justice Day’s decision and confirming that wrongful dismissal claims, particularly those
not seeking compensation for personal injury, are not barred by the WSIA. Since the plaintiff’s claim was
clearly contractual and not tort-based, leave to appeal was denied. The motion was dismissed with costs
of $3,000 awarded to the plaintiff.
Lowndes v. Summit Ford Sales Ltd., 2006 CanLII 14 (ON CA)
In Lowndes v. Summit Ford Sales Ltd., the respondent, Mr. Lowndes, sued his long-time employer for
wrongful dismissal after his termination in 1995 at the age of 59, following nearly 28 years of service. He
had risen to the position of general manager and director, although his responsibilities had diminished
significantly after a change in leadership in 1990. The trial judge awarded him 30 months’ notice plus
four additional months for bad faith dismissal under Wallace principles, totaling 34 months, and granted
damages of over $319,000 minus severance already paid. The employer appealed the length of notice,
Wallace damages, bonus compensation, and the method of calculating prejudgment interest.
The Ontario Court of Appeal found that the trial judge had applied the correct legal principles regarding
notice but erred in exceeding the generally accepted upper limit of 24 months without identifying
exceptional circumstances to justify it. The Court determined that Mr. Lowndes was not a senior
executive in the legal sense and that despite his loyal and lengthy service, the reduction of his
responsibilities and lack of assurance of employment until retirement did not support a longer notice
period. However, the Court upheld the award of four additional months under Wallace, citing evidence

that Scott Vickers, the company president, had attempted to force Mr. Lowndes to resign and handled his
termination in a cruel and insensitive manner, especially considering Mr. Lowndes was facing a prostate
cancer diagnosis.
The Court also agreed with the employer that prejudgment interest should not have been calculated on a
lump sum from the date of dismissal. Since Mr. Lowndes received salary continuance for 21 months, the
Court ruled interest should only apply to the shortfall and unpaid balance during the notice period. The
respondent’s entitlement to bonus compensation, however, was upheld as consistent with past practice and
the employer's own severance calculations. The final judgment reduced the total notice period to 28
months and adjusted the prejudgment interest calculation, allowing the appeal in part.

Workplace COVID-19 Vaccination Policies: Can Non-Unionized
Employees in Ontario be Fired for Non-Compliance?
The article Workplace COVID-19 Vaccination Policies: Can Non-Unionized Employees in Ontario be
Fired for Non-Compliance? explores the legal landscape surrounding mandatory vaccination policies in
non-unionized workplaces in Ontario during the COVID-19 pandemic. It explains that in the absence of a
collective agreement, employers can impose vaccination or testing mandates, and can terminate
employees for failing to comply—provided the termination isn't discriminatory under the Human Rights
Code. Terminated employees would usually be entitled to severance or termination pay unless the
employer can establish “just cause,” which is a high legal standard rarely met by refusal to vaccinate
alone.
The authors analyze whether refusal to comply with such policies constitutes just cause for dismissal,
concluding that in most cases, it likely does not. Just cause requires serious misconduct or behavior
incompatible with continued employment. A refusal to vaccinate, particularly in cases where the policy
was introduced mid-employment and the employee has not acted dishonestly, typically wouldn’t rise to
that threshold. However, dishonesty—such as lying about vaccination status—could amount to just cause.
The article also discusses the limited legal privacy protections for employees, which generally do not
prevent employers from requesting vaccination status in the context of workplace safety.
Finally, the article outlines exemptions and employee rights under the Human Rights Code, including
accommodation for medical, religious, or disability-related reasons. While medical exemptions are clearly
recognized, religious or creed-based objections must be sincerely held and may still be overridden if
accommodating them causes “undue hardship” to the employer. The authors conclude with practical
options for employees, including seeking accommodation, pursuing legal remedies for wrongful
dismissal, or challenging discriminatory terminations before courts or the Human Rights Tribunal. The
evolving legal context and the importance of staying updated on public health directives are emphasized.

Stuart v. Navigata Communications Ltd., 2007 BCSC 463 (CanLII)
In Stuart v. Navigata Communications Ltd., 2007 BCSC 463, Jacqui Stuart sued her former employer,
Navigata, for wrongful dismissal after being terminated without notice in March 2006. Stuart had worked

for the company and its predecessors for 24 years, most recently as Manager of Strategic Accounts
handling the top ten clients. In 2001, she transitioned to a part-time schedule to care for her children, and
in early 2006, she was granted a leave to care for her son after he was diagnosed with Type I Diabetes.
During this leave, the company initiated severance discussions but ultimately terminated her employment
without notice or finalized agreement. Stuart claimed 22–24 months' notice, Wallace damages for bad
faith dismissal, punitive damages, and additional unpaid commissions.
The Court found that Ms. Stuart was a long-term, high-performing employee with unique responsibilities,
a substantial client base, and significant earnings. Though she worked part-time, her contributions and
income were substantial, warranting a high notice period. Justice Martinson rejected the employer's
arguments that Stuart's part-time status should reduce the notice period and concluded she was entitled to
18 months' reasonable notice. In addition, based on the employer’s deceptive and insensitive termination
tactics—including misleading negotiations, abruptly cutting off access to personal files, and delaying
statutory entitlements—Ms. Stuart was awarded an additional 2 months in Wallace damages, for a total of
20 months’ notice and $216,666.66 in compensation.
However, the Court denied Ms. Stuart's claims for punitive damages and commissions on a contract
signed post-termination, as the contractual clause only entitled her to commissions verified before her last
working day. The Court also ruled that there was no prima facie discrimination based on family status
under the Canadian Human Rights Act, applying the restrictive definition from the Campbell River
decision. Ultimately, the judgment emphasized good faith conduct in terminations and acknowledged the
challenges faced by part-time working parents in specialized industries.
MacMillan v. Brantpack Distributing Ltd., 2006 CanLII 36249 (ON SC)
In MacMillan v. Brantpack Distributing Ltd. and Fergus, the Superior Court of Justice addressed the issue
of costs following a wrongful dismissal case where the plaintiff, Gerry MacMillan, succeeded in
obtaining judgment against his former employer, Brantpack Distributing Ltd., but failed in his claim
against its director, Timothy J. Fergus. Justice Flynn noted that although Brantpack admitted liability
early in the proceedings and the main remaining issues concerned notice period, bonus, and benefits, a
significant portion of the trial—about half—was devoted to pursuing the unsuccessful claim against Mr.
Fergus.
The Court awarded costs to both sides based on partial indemnity rates of $225/hour, which were deemed
fair given the lack of assistance from counsel in providing proper cost outlines or actual rates charged to
their clients. Because the plaintiff spent about 50% of the trial focusing on Mr. Fergus, Justice Flynn
found it fair to award Mr. Fergus $11,640 in costs. Conversely, the plaintiff was awarded $27,000 in costs
against Brantpack, half of the $55,000 claimed, due to the narrow scope of the issues litigated after
Brantpack’s early admission of liability and the failure of the Wallace damages claim.
Justice Flynn also permitted Brantpack to set off the amount awarded to Mr. Fergus against what it owed
the plaintiff if the plaintiff failed to pay Fergus’s costs within 30 days. The decision illustrates the
principle that costs should reflect the parties’ relative success at trial and the time and effort expended on

specific issues, while also emphasizing the need for counsel to assist the court with accurate and complete
cost submissions.

Dennis v. Barr et al., 2010 ONSC 4057 (CanLII)
In Dennis v. Barr et al., the plaintiff, Allan Christie Dennis, brought an action for wrongful
dismissal against John Peter Barr and Almaguin Publishing (1989) Limited. Dennis had been
employed with the company since 1975 and served as editor of the newspaper, supervising 30
employees. In 2006, following the sale of the company to Metroland Printing, all employees
were terminated, and Dennis was dismissed without any prior consultation or discussion.
Although he received eight weeks’ statutory notice, he was not offered further compensation or
support in securing employment with the new owners, despite a long history of faithful service
and positive contributions to the company’s growth.
Justice Del Frate found that Dennis was wrongfully dismissed and entitled to common law notice
beyond the statutory minimum. The court awarded him nine months and three weeks’ pay,
totaling $37,010.12, since he successfully mitigated his damages by securing a higher-paying job
in July 2007. Additionally, the court allowed reasonable employment-related expenses including
mileage, moving costs, initial rent, and storage fees, which amounted to several thousand dollars.
However, claims for Wallace damages were denied, as the employer’s conduct, though lacking in
empathy, did not meet the threshold of egregious or bad faith behavior outlined in Honda v.
Keays.
Liability was assigned to both the corporate defendant and John Peter Barr personally, due to
Barr’s controlling role and his failure to respond to the proceedings. His defence had been struck
earlier, and Almaguin Publishing failed to attend trial. Costs were awarded on a reduced basis to
account for time spent pursuing other defendants who were ultimately dismissed from the action.
The total judgment, including damages, expenses, interest, and costs, amounted to $65,557.19.

Taylor et al. v. Design Plaster Mouldings Ltd., 2010 ONSC 237 (CanLII)

In Taylor et al. v. Design Plaster Mouldings Ltd., the plaintiffs brought a wrongful dismissal claim and
sought Wallace damages, alleging they were terminated for whistleblowing on misconduct by the
defendant’s principal, David Ryan. The defendant moved to strike various parts of the pleadings, arguing
they were scandalous and irrelevant. Justice Corbett agreed, finding the impugned claims were intended
to embarrass Mr. Ryan and involved allegations that were not relevant to the wrongful dismissal issue.
Specifically, the court found it implausible that there was an implied contractual term requiring Ryan to
investigate his own conduct based on an employee’s complaint.

The court emphasized that the employment contract did not contain the express terms the plaintiff
claimed, nor could the alleged implied terms be reasonably inferred. Since David Ryan was both the
directing mind of the defendant and the person allegedly engaging in misconduct, the plaintiff’s
theory—that Ryan would be expected to investigate himself—was deemed absurd. Additionally, any
alleged misconduct by Ryan may have legal significance in other contexts but had no bearing on the
employment contract or the wrongful dismissal claim itself.
Furthermore, Justice Corbett dismissed the plaintiffs’ argument that the employer’s false explanation for
the termination (claiming insufficient work instead of whistleblowing) supported Wallace damages. The
court held that the explanation given, even if false, did not harm the plaintiff’s reputation or suggest any
misconduct on his part. As a result, there was no basis for a Wallace claim. The defendant’s motion to
strike the offending pleadings was granted, and costs of $3,000 were awarded to the defendant on a partial
indemnity basis.

Austen v. Forbes Leasing Ltd., 2005 NSSC 257 (CanLII)
In the case of Austen v. Forbes Leasing Ltd., the plaintiff, David Austen, brought a wrongful dismissal
action against his employer, Forbes Leasing Ltd., claiming he was terminated without cause after a
long-term employment that began in 1989 and ended in 2004. Austen alleged that his dismissal was
preceded by a campaign of harassment by the company president, Patrick Forbes, which was intended to
force him to resign. He further asserted that he had tenure and could not be dismissed without cause, and
he sought damages for wrongful dismissal, including Wallace damages for the employer’s alleged bad
faith conduct in the manner of dismissal.
The defendant sought to strike several paragraphs from the statement of claim, arguing that they were
frivolous, vexatious, or disclosed no reasonable cause of action. In particular, the defendant objected to
claims of "tenure," suggested breaches of pension contributions, and descriptions of the employer's
alleged retaliatory conduct leading up to the termination. Justice Robertson held that although there were
drafting deficiencies and the pleadings included a mix of facts and evidence, they did not warrant being
struck. The judge accepted that the events described—such as changes to benefits and alleged
micromanagement—were potentially relevant to establishing the context and employer conduct for a
claim of constructive dismissal or Wallace damages.
Justice Robertson ruled that the pleadings sufficiently outlined a wrongful dismissal claim where damages
may arise from a lack of reasonable notice and the employer's manner of termination. She emphasized
that it was not the role of the motions judge to assess the strength of the case but rather to determine if
there was a reasonable cause of action on the face of the pleadings. As such, the motion to strike was
dismissed, allowing the plaintiff's claims to proceed to trial, including the claim for Wallace damages
based on the employer’s alleged bad faith and mistreatment leading up to the dismissal.

Emergis Inc. v. Doyle, 2007 CanLII 1914 (ON SC)

In Emergis Inc. v. Doyle, the Ontario Superior Court reviewed an arbitration award concerning the
dismissal of Joseph Doyle for alleged sexual harassment. Emergis argued that Doyle, a senior manager,
had made a series of inappropriate sexual comments to female employees at a Christmas party and other
times, and that this conduct warranted immediate dismissal for cause. Although Doyle denied most
allegations, the arbitrator found all the claims to be credible and concluded that Doyle had created a
poisoned work environment, constituting sexual harassment as defined by law and Emergis’ internal
policy.
Despite confirming the harassment occurred, the arbitrator ruled that Emergis did not have just cause to
terminate Doyle’s employment. The decision was based on several factors: the harassment, while serious,
did not involve physical contact or criminal behavior; Doyle had some potential for rehabilitation; the
investigation process by Emergis was flawed and confrontational; and Emergis failed to consider
alternative disciplinary actions, as required under its own harassment policy. The arbitrator awarded
Doyle twelve months' notice: ten months for dismissal without cause, and two additional months for
Wallace damages due to Emergis’ bad faith during the investigation and improper communication with a
prospective employer.
Justice Morawetz upheld the arbitrator’s decision on the issue of wrongful dismissal, agreeing that the
termination lacked just cause and that the arbitrator appropriately applied the legal principles from case
law. However, he adjusted the damages, reducing the total award from fourteen months to twelve by
combining the two additional months for interference with employment opportunity and Wallace damages
into one lump sum for bad faith conduct. The Court also awarded $7,500 in costs to Doyle, recognizing
his substantial success in defending the arbitration award.

Clarity and Confusion in Employment Law Remedies: A Comment on Honda Canada Inc.
v. Keays, 2009 CanLIIDocs 633
The case Honda Canada Inc. v. Keays revolves around the issue of wrongful dismissal and significantly
reshaped Canadian employment law. Kevin Keays, a long-term employee of Honda diagnosed with
chronic fatigue syndrome, was dismissed after refusing to meet with a company-appointed doctor without
clarification on the meeting’s purpose. Keays had sought legal counsel and felt the company retaliated by
revoking his workplace accommodations and ultimately terminating him for “insubordination.” At trial,
the Ontario Superior Court ruled in Keays’ favour, finding that Honda’s actions were unreasonable and in
bad faith. He was awarded 15 months’ notice, extended to 24 months for the manner of dismissal (under
Wallace damages), and $500,000 in punitive damages for Honda’s discriminatory and vindictive conduct.
The Ontario Court of Appeal upheld the finding of wrongful dismissal and the extension of the notice
period to 24 months. However, it reduced the punitive damages to $100,000, noting that while Honda's
conduct was harsh, some of the trial judge’s factual findings (like an alleged conspiracy) lacked
evidentiary support. The court still found sufficient grounds for punitive damages based on Honda’s
mistreatment of Keays and refusal to engage with his legal counsel. Importantly, the Court of Appeal
disagreed on whether discrimination could form the basis for an independent actionable wrong in
wrongful dismissal cases.

The Supreme Court of Canada, in a 7-2 decision, reversed key parts of the lower rulings. While upholding
the 15-month notice period, it rejected both the Wallace “bump-up” and the punitive damages. The Court
clarified that damages for mental distress must be directly linked to reasonably foreseeable consequences
of dismissal, aligning with the Hadley v. Baxendale principle rather than using inflated notice periods as a
proxy. It ruled that discrimination, though reprehensible, is not an “independent actionable wrong” in
contract law for punitive damages, as remedies for discrimination are covered under human rights
legislation. The case is now a landmark in refining the scope of remedies for wrongful dismissal in
Canada.

McCulloch v. Iplatform Inc., 2004 CanLII 48175 (ON SC)
In Paul McCulloch v. iPlatform Inc., iPlatform Canada Inc., and Rammgraph Limited, the Ontario
Superior Court of Justice addressed a wrongful dismissal claim brought by Mr. McCulloch, who was
terminated just 105 days after starting a new job. He had left a ten-year tenure at his previous employer,
S.H.S., to accept a position with the defendants. The Court determined that Mr. McCulloch was employed
jointly by all three defendant companies, given the intermingled nature of their operations, shared
resources, and how they presented themselves throughout the employment relationship. His employment
contract had been signed with “iPlatform Inc. or its designate,” and the Court concluded that all the
defendants were legally liable as his employers.
The Court further rejected the defendants’ claim that McCulloch was dismissed for just cause, as there
was no written reference to misconduct at the time of his termination, and the evidence of poor
performance was unsupported by documentation. The original termination was presented as the result of
corporate restructuring, and no warnings or disciplinary measures were given prior to the dismissal. The
Court also found that while McCulloch may have been motivated to join the defendants partly due to
higher compensation and professional ties, there was little evidence of job security assurances or promises
of long-term employment that would amount to significant inducement.
Ultimately, the Court ruled in McCulloch’s favour, awarding him three months’ pay in lieu of notice and
an additional three months of Wallace damages due to the defendants’ hardball tactics, failure to provide a
reference, and mishandling of insurance and termination processes. The Wallace damages were not
subject to mitigation. After deducting a small amount previously paid under the Employment Standards
Act, and adding pre-judgment interest, the Court also awarded McCulloch $18,500 in partial indemnity
costs, reinforcing that the defendants’ conduct during and after the termination was improper and
unprofessional.

Meyer v. Danka Business Systems Ltd., 2001 BCSC 428 (CanLII)
In Meyer v. Danka Business Systems Limited, Victor Meyer, a seasoned sales executive, sued his
employer for wrongful dismissal after his employment was terminated without cause in September 1997.

Meyer had joined Danka through its acquisition of his former employer and quickly rose to become one
of its top-performing salespeople. However, tensions arose between Meyer and his supervisor, referred to
as “S.”, who was widely regarded as abusive and hostile. Meyer alleged a prolonged campaign of
mistreatment, including poached sales, withheld commissions, public humiliation, and systemic meter
tampering—a fraudulent practice involving misleading customers about copier usage. Meyer claimed that
his termination was the culmination of retaliation against him as a potential whistleblower.
Despite evidence of an antagonistic work environment and questionable managerial conduct, the court
found no actionable bad faith or unlawful motive in Meyer’s dismissal. Justice Bauman determined that
while Meyer raised the meter tampering issue during a meeting with Danka’s Vice-President shortly
before his termination, there was no proof that his dismissal was orchestrated in response to that
complaint. The judge rejected claims for Wallace damages, intentional infliction of mental suffering,
deceit, and punitive damages. Huntington, the executive who dismissed Meyer, was found to have acted
on legitimate business concerns, not malice or conspiracy. The evidence did not support that Meyer had
been targeted for exposing wrongdoing, and much of his workplace conflict stemmed from his own
combative behavior.
Ultimately, the court awarded Meyer 10 months’ notice pay totaling $53,500, plus damages for the loss of
a Jeep lease ($7,701.12), the missed opportunity to attend a sales conference ($6,000), and a small unpaid
commission ($513), bringing his total damages to $67,714.12. The court dismissed claims for lost
commissions related to alleged poaching and other speculative prize entitlements. Meyer was granted
costs on Scale 3, recognizing his partial success in the wrongful dismissal claim, but the broader
allegations of bad faith and tortious conduct were firmly rejected.

Charles River Consultants Corp. v. Coombs, 2006 NLTD 174 (CanLII)
In Charles River Consultants Corp. v. Coombs, the case concerned the wrongful dismissal of John
Coombs, who was employed by Charles River Consultants Corp. (CRC) for less than three months before
being terminated. Coombs was initially recruited from a stable position after CRC created a custom role
to attract him. Upon termination, he was given only two weeks’ notice. He pursued a claim through
consensual arbitration, where the arbitrator ruled in his favor, finding that he had been dismissed without
just cause and was entitled to common law reasonable notice. The arbitrator awarded Coombs 5.5 months
of notice, an additional three months due to inducement (for leaving secure employment), and a further
three months as “Wallace damages” for bad faith in the manner of his dismissal. Coombs was also granted
solicitor-client costs and full coverage of the arbitration expenses by CRC.
CRC challenged the arbitration award through judicial review, claiming the arbitrator had erred in his
interpretation of the employment contract and showed bias due to an off-the-record exchange. The court
found no reviewable error in the arbitrator’s interpretation of the contract, reasoning that the “terminable
at will” clause did not displace the presumption of reasonable notice under Canadian common law. The
arbitrator’s findings on inducement and the amount of notice were upheld, as was his ruling that CRC had
not demonstrated just cause for dismissal. However, the court set aside the Wallace damages, stating that

although CRC had acted in bad faith by introducing unsubstantiated and harmful allegations at arbitration,
there was insufficient evidence that Coombs suffered any compensable loss as a result.
Finally, the court found CRC’s late-stage claim of arbitrator bias to be unsubstantiated and improperly
pursued. As a result, the court not only upheld most of the arbitration award but also penalized CRC by
ordering it to pay 125% of Coombs’ party-and-party legal costs for the review. The decision reinforces the
enforceability of reasonable notice protections, the limitations of “at-will” clauses in Canadian
employment law, and the obligation of employers to act in good faith throughout the dismissal process.

Kitzman v. Babcock & Wilcox Canada Ltd., 2006 CanLII 32626 (ON SC)
In Kitzman v. Babcock & Wilcox Canada Ltd., Robert Kitzman was wrongfully dismissed after over 33
years of service with the company. Upon returning from vacation in July 1999, he was abruptly
terminated for “willful neglect,” without any prior notice or chance to respond. His employer alleged that
he failed to obtain competitive bids for a specific project and launched a $350,000 counterclaim against
him for alleged negligence. The court found that there was no evidence of actual financial loss or
misconduct that justified dismissal without notice. The counterclaim was seen as a punitive tactic by the
employer, aimed at discouraging future wrongful dismissal suits from employees.
The court concluded that the dismissal was a result of a biased and unfair process led by Kitzman’s
supervisor, Ken Barrs, who was determined to remove him regardless of facts or procedure. Despite a
previously positive performance evaluation, Barrs revived years-old minor issues and conducted a
one-sided investigation without input from Kitzman. The company failed to follow its own progressive
disciplinary policies and offered no opportunity for explanation, instead choosing immediate termination.
The court noted this approach reflected bad faith and malice, particularly when paired with the baseless
counterclaim, and ruled that Kitzman had been treated unjustly and without dignity.
Justice Flynn awarded Kitzman damages equivalent to 20 months' notice, totaling $50,805, plus an
additional $12,951 in Wallace damages for the employer’s bad faith conduct, including their vindictive
handling of the termination and counterclaim. The court acknowledged that Kitzman made reasonable and
immediate efforts to mitigate his losses by transitioning to full-time work with the LCBO. In total, he was
awarded $63,756, plus interest and costs. This case reinforces that long-term employees must be treated
with fairness, and employers must follow due process and act in good faith when terminating
employment.

MacMillan v. Brantpack Distributing Ltd., 2006 CanLII 23262 (ON SC)
In MacMillan v. Brantpack Distributing Ltd., the plaintiff, Gerry MacMillan, was wrongfully dismissed
from his position as operations manager at Brantpack at the age of 61, without cause or notice. He had
been employed continuously since 1994—first by Brantcorp and then by Brantpack, which purchased
Brantcorp in 1997 and retained its employees. MacMillan’s role, salary, and responsibilities remained
unchanged after the acquisition, and he worked with the understanding that he would receive a 10%

annual bonus based on company profits. Brantpack later offered him a severance package of only 2.5
months’ pay and car lease coverage, which he rejected. The court found that he had a continuous
employment period of five and a half years and was entitled to nine months’ reasonable notice.
The court held that Brantpack was liable for damages, including nine months' salary, car benefits, and
unpaid bonuses. MacMillan was awarded $66,973 in damages, with additional prejudgment interest
totaling over $21,000, bringing the judgment to $88,402.03. The court rejected the plaintiff’s claim for
extended healthcare benefits since he could not prove out-of-pocket losses. It also dismissed the request
for Wallace damages, noting that while the employer initially alleged cause and delayed retracting it, their
overall conduct did not meet the threshold of harsh or malicious behavior warranting such damages. The
court also determined that the plaintiff had adequately mitigated his losses before becoming ill in early
2000.
Importantly, the court dismissed MacMillan’s attempt to hold Timothy Fergus, Brantpack’s sole
shareholder and director, personally liable. Justice Flynn ruled that Fergus had not acted oppressively or
attempted to make Brantpack judgment-proof, and Brantpack remained a viable company capable of
meeting its obligations. The court found no grounds to pierce the corporate veil or apply the common
employer doctrine. Fergus was found not to have personally guaranteed MacMillan’s employment and
was entitled to costs against the plaintiff. Ultimately, Brantpack alone was held liable for the wrongful
dismissal.

Halina v. Micro Hydraulics Inc., 2004 CanLII 61157 (ON SC)
In Halina v. Micro Hydraulics Inc., the plaintiff, Willard Halina, a long-serving electrical engineer, was
dismissed without cause after 18 years of service, following the sale of Micro Hydraulics’ assets to
Haldex Barnes. Although Halina initially continued working during the notice period, he ultimately
resigned before the extended working notice ended. The court found that Halina was entitled to 17
months’ reasonable notice, considering his age, role, and tenure, and awarded him $44,000 in salary,
accounting for partial mitigation and self-employment earnings. Additional awards included $7,607.14 for
unpaid RRSP contributions, $1,500 for lost benefits, and $5,000 for the loss of an automobile benefit.
Halina’s claims for share options, profit-sharing, and emotional distress were dismissed due to insufficient
evidence. The court noted that while Halina believed he had been promised stock options and
profit-sharing, there was no binding agreement. Similarly, although he raised concerns about workplace
treatment and alleged emotional distress, the conduct of the defendants did not meet the legal threshold
for awarding punitive or aggravated damages. However, the court did find the employer’s handling of the
dismissal lacking in good faith and awarded Halina $12,000 in Wallace damages, citing the employer’s
inadequate severance offer, poor communication, and hardball tactics.
The defendants' counterclaim against Halina, originally for $4 million and reduced to $575,000, was also
dismissed. The court found no credible evidence that Halina caused a reduction in the company’s sale
price by allegedly disclosing confidential information. Ultimately, the court ordered Micro Hydraulics to
pay Halina a total of $70,107.14, plus $35,000 in partial indemnity costs and pre-judgment interest.

Justice Echlin remarked on the unfortunate breakdown of a long-standing employment relationship and
concluded that both sides bore responsibility for the deterioration, noting there were “no clear
winners—only losers” in the case.
Brien v. Niagara Motors Limited, 2009 ONCA 887 (CanLII)
In Brien v. Niagara Motors Limited, the plaintiff, Margaret Brien, sued her former employer for wrongful
dismissal. Brien had worked for Niagara Motors for a total of 23 years, with a two-year gap after her sixth
year when she left to raise her children. The trial judge considered her service to be continuous, noting
that Brien returned to her role by invitation and was treated as a longstanding employee upon her return,
receiving benefits such as two weeks of vacation without the standard waiting period. As such, the Court
of Appeal agreed with the trial judge's assessment and upheld the 23-year employment classification.
However, the Court of Appeal took issue with the trial judge's award of Wallace damages—an additional
two months’ compensation for the manner in which Brien was dismissed. The Court noted that since the
Honda v. Keays decision, mental distress damages must be supported by evidence of significant harm,
such as medical treatment or professional support. In Brien’s case, she did not seek therapy or medical
help following her dismissal, and thus the court ruled that the evidence did not support an award for
compensatory mental distress damages. Consequently, the two-month Wallace award, amounting to
$8,826.56, was set aside.
A further correction involved the double-counting of Brien’s Employment Standards Act severance
payment of $20,240, which both parties agreed should be deducted from the total award. As a result, the
appeal was allowed in part. The damages awarded to Brien were reduced by a combined total of
$29,066.56. Nonetheless, Brien was awarded costs of $8,000 for the appeal, as she remained successful
on the primary issue regarding the length and continuity of her employment.
Desforge v. E.D. Roofing Limited, 2008 CanLII 54966 (ON SC)
In Desforge v. E.D. Roofing Limited, the plaintiff, Lawrence Desforge, brought a wrongful dismissal
claim against his employer and was awarded $18,141.80 in damages for a 13-month notice period. The
court found that Desforge made reasonable efforts to mitigate his losses and had returned to full
employment shortly after his dismissal. However, Desforges' claim for punitive damages was abandoned,
and his claim for Wallace damages was rejected. Despite a modest recovery, he sought substantial
indemnity costs totaling over $70,000, arguing that the employer had acted unreasonably and forced him
into costly litigation.
Justice Gray found both parties had acted unreasonably. Desforge failed to convert the case to the
simplified procedure under Rule 76, even after it became evident his damages would be well below
$50,000—qualifying it for the streamlined process. He had secured new employment within weeks of
dismissal and continued working until trial, with his damages becoming clear long before the hearing.
Meanwhile, the employer also contributed to unnecessary costs by rejecting early reasonable settlement
offers and maintaining a claim of just cause until shortly before trial. However, because Desforge did not

amend his claim to fit the simplified procedure despite clear indications that it was appropriate, he
forfeited his right to recover any costs under Rule 76.13.
Ultimately, Justice Gray ruled that although Desforge technically succeeded at trial, he would receive no
costs due to his failure to act reasonably in managing the litigation. The judge emphasized that the
purpose of Rule 76 is to promote efficient and cost-effective resolution of modest claims. Since
Desforge's continued use of the ordinary procedure unnecessarily prolonged the case and inflated
expenses, the rule's cost sanctions applied strictly. This case serves as a cautionary tale highlighting the
importance of proportionality in civil litigation and the risks of failing to adhere to procedural
expectations when dealing with modest claims.

Pavlis v. HSBC Bank Canada, 2009 BCSC 498 (CanLII)
In Pavlis v. HSBC Bank Canada, the plaintiff, Marcia Pavlis, brought an extensive wrongful dismissal
claim against HSBC Securities (Canada) Inc. and HSBC Bank Canada. She alleged constructive dismissal
while on disability leave and claimed she was treated in bad faith, underpaid trailer and disability fees,
wrongfully charged for client errors, denied proper sales support, and had her communications
intercepted. Pavlis also asserted that these actions led to severe financial distress, including foreclosure
and bankruptcy, which ultimately impacted her ability to find new employment in the financial services
industry. Her statement of claim included demands for damages relating to loss of income, benefits,
pension, staff banking privileges, and aggravated and punitive damages.
The court examined each of the alleged breaches to determine whether they constituted a fundamental
breach of the employment contract that would support a finding of constructive dismissal. Justice Dorgan
concluded that the unpaid trailer fees and disability shortfalls, even if accepted as true, represented only a
small percentage of Pavlis’ total income (around 4–6%) and therefore did not rise to the level of a
fundamental breach. Her claim regarding sales support also failed, as the employer had provided support
in line with company policy based on performance. Additionally, a partial client settlement charge and a
recorded business call did not amount to contractual breaches. The court found no evidence that Securities
had acted in bad faith or maliciously, and also held that HSBC Bank Canada had no contractual obligation
to Pavlis and was not liable in negligence.
Ultimately, the court dismissed all of Pavlis' claims. Justice Dorgan found that while Pavlis sincerely
believed she had been wronged and had suffered significant personal and financial hardships, her
allegations did not meet the legal standards for constructive dismissal or bad faith termination under
employment law. The breakdown in the employment relationship was attributed more to
miscommunication and differing perceptions than to any actionable misconduct by the employer. The
judgment emphasized that hardship and misfortune, though deeply regrettable, do not in themselves
justify compensation unless legal standards of liability are met.

Andrachuk v. Bell Globe Media Publishing Inc., 2009 CanLII 3974 (ON SC)

In Andrachuk v. Bell Globe Media Publishing Inc., the plaintiff, Leslie Andrachuk, alleged that she was
wrongfully dismissed from her senior marketing role at The Globe and Mail shortly after informing her
employer of her pregnancy and intent to take maternity leave. Although she was told her position was
eliminated due to departmental reorganization, she later discovered that a younger male employee had
assumed her responsibilities and was later promoted to a role nearly identical to hers. She claimed that the
dismissal was discriminatory based on gender, age, and pregnancy, and that the true reason for her
termination had been fraudulently concealed. She launched her legal action more than two years after her
termination but within months of discovering the alleged misrepresentation.
The employer moved to have the claim dismissed as statute-barred under the Limitations Act, 2002,
arguing the two-year limitation period had expired. However, Justice O’Marra ruled that the claim raised
genuine factual issues requiring a trial, particularly concerning whether there had been fraudulent
concealment that delayed the discoverability of the cause of action. The judge held that the limitation
period could be tolled if the employer had misled the plaintiff into believing her dismissal was legitimate.
Because the claim involved factual disputes—such as whether the reorganization was a sham—the court
declined to resolve the limitation issue under Rule 21 and allowed the matter to proceed to trial.
The court also rejected the employer’s request to strike allegations of discrimination and the plaintiff’s
claim for aggravated and punitive damages. While reaffirming that discrimination alone is not an
actionable common-law tort, the judge found that allegations of discrimination could support a wrongful
dismissal claim, especially if framed as reprisal under the Employment Standards Act, 2000. The judge
also ruled that if the dismissal involved bad faith, such as fraudulent concealment or a retaliatory motive,
the plaintiff could potentially receive aggravated or punitive damages. Accordingly, the motions to strike
were denied, and the plaintiff was granted leave to amend her statement of claim to specifically plead
relevant statutory provisions.

Jalan v. Inst. of Indigenous Government et al., 2005 BCSC 590 (CanLII)
In Jalan v. Institute of Indigenous Government, 2005 BCSC 590, Dr. Rahael Koshy Jalan, an academic
formerly employed at the Saskatchewan Indian Federated College (SIFC), was hired in 1999 as Dean of
Academic Affairs at the Institute of Indigenous Government (IIG). A key element of her wrongful
dismissal claim was that she had been granted academic tenure at IIG by its then-president, Dr. Georges
Sioui, which she believed guaranteed her job security. When she was terminated without cause in 2002,
she claimed breach of tenure, bad faith dismissal, negligent misrepresentation, and sought damages
including aggravated and punitive damages. However, the court found Dr. Jalan’s credibility questionable
and determined that no formal tenure system existed at either SIFC or IIG at the time. While a letter from
Dr. Sioui mentioned tenure, it was not based on a structured or authorized tenure process.
Despite rejecting the existence of formal tenure, the court found that the letter provided by Dr. Sioui
granted Dr. Jalan a reasonable expectation of job security, which influenced the assessment of her
reasonable notice period. The court ruled that the promise of tenure in the letter, although not legally
enforceable as formal tenure, was still a significant factor. As a result, Dr. Jalan was awarded the
maximum allowable notice period of 18 months under the Public Sector Employers Act. The court also

considered the defendant’s failure to reimburse her for travel expenses and its baseless allegations of
misconduct during litigation as acts of bad faith, although not severe enough to justify punitive damages.
No separate actionable wrong was proven to justify aggravated or punitive damages.
The IIG’s attempt to seek indemnity from Dr. Sioui was rejected. Although he had issued the tenure letter,
the court held that IIG bore responsibility for its own actions, particularly for not investigating or
addressing the letter before terminating Dr. Jalan. The court also found that Dr. Sioui reasonably believed
he had the authority to offer such terms and acted in what he believed to be IIG’s best interest. Ultimately,
the third-party claim against Dr. Sioui was dismissed, and while Dr. Jalan was awarded damages, her
recovery was reduced by 20% due to her failure to adequately mitigate her losses, such as not applying for
numerous available mathematics teaching positions.

Laszczewski v. Aluminart Products Limited, 2007 CanLII 56493 (ON SC)
In the case of Laszczewski v. Aluminart Products Limited, Waldemar Laszczewski, a senior production
director, was terminated from his employment after just over six months without a clear explanation or
proper documentation of alleged misconduct. Laszczewski had been recruited from a secure position
through persistent efforts by a recruiter and was convinced to join Aluminart based on promises of
company growth and future advancement. Despite initial hesitations and attempts to negotiate better
contract terms, he signed without seeking legal advice. Once employed, he was placed in a unionized
setting without proper training or support, where his management style clashed with Aluminart’s human
resources personnel.
Aluminart alleged that Laszczewski’s termination was for just cause, citing six workplace incidents
ranging from insensitive comments to minor workplace disputes. However, most of these were never
properly addressed through progressive discipline or formal warnings, and many were never even
communicated to him. Justice Echlin found that Aluminart failed to follow its own policies, lacked proper
documentation, and never clearly stated the reasons for dismissal at the termination meeting. The court
concluded that the dismissal was not for just cause, and Aluminart had acted hastily and unfairly by
letting go of an employee without due process or proper notice, especially considering his lack of
experience in unionized environments and the absence of prior discipline.
As a result, the court awarded Laszczewski $33,294.86 in damages for wrongful dismissal, representing
four months’ notice, and $12,500.00 in costs. The court rejected claims for additional “Wallace damages”
based on bad faith, noting that while the dismissal process could have been handled more respectfully,
Aluminart’s actions were not malicious or deserving of further penalty. It also found no grounds for
inducement despite Laszczewski being recruited, citing his active participation in the job change and lack
of contract safeguards. Ultimately, the decision highlighted the importance of progressive discipline,
clarity in termination procedures, and employer responsibility in properly training and managing senior
hires.
Sommerard v. I.B.M. Canada Ltd., 2006 CanLII 9581 (ON CA)

In Sommerard v. IBM Canada Ltd., Greg Sommerard, a technical support employee, was terminated by
IBM after he made a concerning statement to a company nurse, saying he might "thump somebody" if he
returned to work. IBM interpreted this as a credible threat and dismissed him for cause, citing the risk he
posed to workplace safety. Sommerard, who had a history of emotional outbursts and was on short-term
disability at the time, argued that the statement was not a genuine threat but a cry for help, and that IBM
had failed to consider his mental health or alternative options before terminating him. He sued for
wrongful dismissal.
A jury trial found that IBM did not have just cause to dismiss Sommerard. The jury awarded him nine
months’ notice, an additional four months in Wallace damages for bad faith in the manner of dismissal,
$1,000 in aggravated damages, and $22,000 in punitive damages. IBM appealed the decision, while
Sommerard cross-appealed to increase punitive damages. The Court of Appeal upheld the jury’s finding
that there was no just cause and that Wallace damages were warranted due to the employer's insensitivity
in handling the dismissal, particularly given Sommerard’s health and financial vulnerability. However, the
Court ruled that the nine-month notice period was excessive and reduced it to four months, aligning with
the trial judge’s original suggested range of three to five months.
The Court also overturned the aggravated and punitive damages awards, finding that there was no
independent actionable wrong beyond the breach of contract itself. The only potentially valid
claim—intentional infliction of mental distress—had been rejected by the jury, which meant the other
awards could not stand. The Court emphasized the need for plaintiffs to clearly plead any separate
actionable wrongs and for trial judges to provide proper instructions to juries. Ultimately, the appeal was
allowed in part, reducing Sommerard’s total compensation to eight months’ salary, while his cross-appeal
for increased punitive damages was dismissed.
Zhang v. Su, 2018 ONSC 6657 (CanLII)
In Zhang v. Su, the plaintiff, Zhen Zhang, brought a motion to strike a specific paragraph (paragraph 19)
from the defendant Ziming Su's Statement of Defence and Counterclaim. The case arose from a failed real
estate transaction involving a property in Vaughan. Su had agreed to purchase the property and paid a
$30,000 deposit, but was unable to close on the deal due to mortgage financing issues. The parties had
negotiated extensions and conditions for the possible assignment of the agreement to Su’s mother. On the
closing day, after Su proposed a resolution and Zhang countered with conditions, the parties reached an
impasse. Zhang then declared Su in default and commenced legal action.
The central issue in the motion was whether paragraph 19 of Su's Defence—which quoted part of Zhang’s
conditions during failed settlement discussions—should be struck for violating settlement privilege or for
improperly pleading evidence. Master Sugunasiri declined to rule on the settlement privilege issue at this
early stage, holding that such a determination is better left to the trial judge. However, he did strike
paragraph 19 on the basis that it pleaded evidentiary details rather than material facts, contrary to Rule
25.06(1) of the Rules of Civil Procedure. The court noted that the paragraph quoted verbatim from what
may be privileged communications, and its evidentiary nature did not assist the pleadings, especially since
the breach of contract was already properly pleaded elsewhere in the Defence.

Ultimately, the court found that removing the paragraph did not prejudice the defendant’s case, as the
underlying facts could still be explored during discovery or brought forward at trial, subject to evidentiary
rules. The court granted the motion to strike paragraph 19 without leave to amend and awarded partial
indemnity costs of $6,400 to the plaintiff. While the plaintiff was successful in having the paragraph
removed, the court emphasized that much of the plaintiff’s argument had focused on settlement privilege,
which was not the basis for the court’s decision—thereby limiting the extent of costs awarded.

The Contract of Employment at the Supreme Court of Canada: Employee Protection and
the Presumption of Employer Freedom, 2015 CanLIIDocs 4893
This article by Gillian Demeyere, titled The Contract of Employment at the Supreme Court of Canada:
Employee Protection and the Presumption of Employer Freedom, offers a critical examination of how the
Supreme Court of Canada has addressed wrongful dismissal over the past 25 years. Demeyere challenges
the commonly held view that strong employee protections in common law must come from public policy
exceptions or departures from general contract principles. She introduces the idea of the "presumption of
employer freedom"—a conceptual lens through which courts have historically viewed the employment
contract, rooted in the older master-servant relationship. This presumption tends to favour employers by
treating their managerial authority as the default and minimizing implied obligations to employees unless
explicitly stated.
The article analyzes landmark cases such as Machtinger v. HOJ Industries, McKinley v. BC Tel, and
Wallace v. United Grain Growers to illustrate how the Supreme Court has navigated the tension between
enforcing employee rights and upholding traditional contractual doctrine. Justice Iacobucci, who authored
many key decisions, often resorted to policy-based reasoning rather than contractual principles to protect
employees, citing the personal and societal importance of work and the inherent vulnerability of
employees. Demeyere argues that this reliance on policy masks a deeper issue: the legal system’s
reluctance to recognize that employee rights like reasonable notice, protection from unjust dismissal, and
fair treatment can and should arise from the employment contract itself.
Ultimately, Demeyere proposes a more contractually coherent framework for employee rights—one that
does not require courts to justify protections through policy alone but instead recognizes them as natural
extensions of the employment bargain (the exchange of work for wages). She warns that viewing the
contract of employment through the lens of employer freedom distorts the legal relationship and may strip
employees of vital protections if courts adopt a strictly doctrinal approach devoid of public policy.
Instead, she calls for an understanding of the employment contract that balances managerial authority
with implied reciprocal duties, thereby grounding employee protections directly within the contract’s
structure.

Crasmariu v. West Van Florist Ltd., 2006 BCPC 291 (CanLII)
In the case of Crasmariu v. West Van Florist Ltd., the claimant, Cristina Crasmariu, was employed with
the defendant for nearly six years before she was dismissed on December 22, 2004. Initially hired as a

receptionist, she later took on the role of delivery coordinator, a crucial position during peak business
seasons like Christmas. On the day following her early departure from work during the busy Christmas
rush, the defendant's owner, Wendy Harrington, terminated her employment, interpreting the claimant's
complaints about not receiving a raise and her perceived attitude as a refusal to work required overtime.
The employer argued this conduct amounted to a repudiation of the employment contract.
However, the court found that Crasmariu had not unequivocally refused to work the extra hours, nor did
she make any clear declaration of non-compliance with her employment obligations. The employer’s
decision to terminate her was based more on assumptions and subjective impressions than on clear
evidence of contractual breach. As such, the court ruled that there was no repudiation of the contract by
Crasmariu and therefore the dismissal was wrongful. The defendant also attempted to rely on a
termination clause in the employment manual that mirrored Employment Standards Act provisions, but
the court found this clause to be vague and not sufficiently clear to override common law notice
requirements.
In assessing damages, the court concluded that a six-month notice period was reasonable given
Crasmariu’s age, length of service, and position, but limited the damages to the period ending May 6,
2005—the date she became a licensed insurance agent, which constituted a reasonable effort at
mitigation. Wallace damages for bad faith dismissal were denied, as the employer's conduct, while
concerning, did not meet the threshold for such an award. Crasmariu was awarded $7,200 for three
months’ lost wages, plus $500 for fees and costs, totaling $7,700.
Sandhu v. North Star Mills Ltd., 2007 BCSC 1222 (CanLII)
In Sandhu v. North Star Mills Ltd., the plaintiff, Kashmir Sandhu, was a loyal and long-serving employee
who worked for the defendant for nearly 20 years before taking a medical leave due to injuries sustained
in a car accident in June 2005. Although Sandhu believed he was still on leave and intended to return
once recovered, North Star, led by Mr. Sanghera, misunderstood his intentions after a request for a letter
indicating no light-duty work was available. When Sandhu eventually informed North Star in October
2006 that he was ready to return, he was told he could not simply resume work. After further delays and a
failed settlement discussion, North Star treated Sandhu as if he had quit, prompting him to file a wrongful
dismissal claim.
The court ruled that Sandhu had not resigned and that his employment had not been frustrated by his
medical leave, which was temporary rather than permanent. North Star’s assumption that Sandhu would
not return was unsupported by direct communication, and the employer failed to clarify the employee's
intentions. Sandhu's 16-month medical leave, though lengthy, was not unreasonable given his long
service, the non-key nature of his position, and past precedent allowing similar absences for other
employees. The judge concluded that Sandhu’s contract had not ended and that he had been wrongfully
dismissed.
The court awarded Sandhu 12 months' notice, reduced to the actual period of unemployment—from
October 10, 2006, when he sought to return, to April 30, 2007, when he began new employment. This
amounted to $28,525.50 in lost salary and holiday pay, plus $2,550.21 in reasonable mitigation expenses

for retraining, totaling $31,075.71. The court found no basis for Wallace damages or failure to mitigate, as
Sandhu had reasonably declined a temporary position and actively sought other employment. Judgment
was awarded with costs to the plaintiff.

Baker v Vecima Networks Inc, 2011 SKQB 368 (CanLII)
In Baker v. Vecima Networks Inc., the plaintiff, Geoff Baker, was terminated from his position as an
engineering technologist at Vecima after nearly five years of employment. He claimed wrongful
dismissal, asserting that the company had subjected him to a hostile work environment prior to his
termination, failed to provide reasonable notice, and denied him the ability to exercise stock options and
receive tuition subsidies. Baker also sought aggravated and punitive damages due to alleged bad faith in
the termination process. The defendant did not argue just cause for dismissal but claimed it had provided
sufficient severance (one month’s pay) and that Baker had failed to mitigate his losses.
The Court found that Baker was entitled to five months' notice for his termination, aligning with the
duration both parties ultimately acknowledged as reasonable. The judge ordered that Baker be paid an
additional four months’ salary beyond what he had already received, totaling $14,508, minus a $1,000
deduction for mitigation. While Baker had returned to school and worked minimally as a teaching
assistant during his unemployment, the Court accepted that he had made reasonable efforts to mitigate.
However, claims for holiday pay, stock options, and tuition reimbursement were dismissed, as the Court
found that Baker had not met the required obligations or that no contractual entitlements had been
established for those benefits.
Regarding the claim for Wallace or bad faith damages, the Court applied the principles established in
Honda v. Keays and concluded that while Baker felt mistreated, the employer’s actions did not meet the
high threshold for awarding aggravated or punitive damages. There was no evidence of malicious,
outrageous, or particularly unfair treatment during or after the dismissal. The Court acknowledged normal
workplace conflict but did not find sufficient grounds to extend damages beyond the severance award.
Judgment was therefore entered in favor of the plaintiff for $13,508 plus prejudgment interest, with costs
to be determined at a later date.
Lewis v. Lehigh Northwest Cement Limited, 2008 BCSC 542 (CanLII)
In Lewis v. Lehigh Northwest Cement Limited, the plaintiff, Robert Lewis, brought an action against his
long-time employer for wrongful dismissal after being terminated without cause following a medical
leave. Lewis had worked with the company for 26 years in increasingly senior roles, and after his
disability insurer deemed him fit to return to work, he expressed his desire to resume employment.
Instead, he was terminated on September 22, 2006, during a meeting held in a public coffee shop. He was
later offered a severance package, including statutory pay and assistance with job searching. Lewis did
not accept the offer, initiating a lawsuit claiming inadequate notice, loss of various benefits, and
additional Wallace damages for the way the dismissal was handled.
The Court held that Lewis was entitled to 22 months of reasonable notice, considering factors such as his
age (late 50s), lengthy service, specialized managerial position, and potential limitations due to medical

history. However, his annual salary was deemed to be $116,150, excluding a $10,000 California
project-specific allowance, which the court ruled was not part of his base pay. The court accepted that
Lewis had genuinely attempted to mitigate his losses through job searches, including preparing multiple
résumés and seeking employment within reasonable personal and geographic limitations. Though he
considered retirement, there was no conclusive evidence that he refused an actual job offer or acted in bad
faith. Therefore, there was no deduction for failure to mitigate.
The Court dismissed Lewis’s claims for additional damages related to bonuses and pension losses, as well
as his claim for Wallace damages. It found that the employer acted professionally throughout the
termination process, including offering gratuitous payments and extending courtesy support. The court
ordered that damages be calculated based on 22 months of salary (less amounts already paid under the
Employment Standards Act and disability benefits after September 22), with pre-judgment interest from
the termination date. Final calculations and costs were left to be resolved by the parties or returned to the
court if needed.
Bru v. AGM Enterprises Inc., 2008 BCSC 1680 (CanLII)
The case Bru v. AGM Enterprises Inc., 2008 BCSC 1680, involves Joey Bru, a 59-year-old deli clerk who
worked at Mediterranean Market in Kelowna, BC. Bru brought a wrongful dismissal claim against her
former employer, AGM Enterprises Inc. and Mediterranean Market Ltd., after what she claimed was an
unjust termination of her employment. The employer maintained that Bru voluntarily resigned without
notice. The court had to determine whether Bru was wrongfully dismissed or had in fact resigned, and
whether the employer’s actions warranted damages for emotional distress, including Wallace and punitive
damages.
The relationship between Bru and her employer had grown strained due to a stressful work environment
and escalating staff conflicts, especially with a co-worker named Ambia Fisher. On November 10, 2007,
following a failed mediation attempt between Bru and Fisher, Bru left work early, citing illness. Two days
later, she called her supervisor, Cindy Morton, and allegedly said she was quitting, though Bru later
denied having resigned. The court found Morton’s version credible—that Bru did say she quit—but ruled
that this statement did not constitute a clear and unequivocal resignation, particularly given Bru’s
emotional distress, financial vulnerability, and her immediate retraction the next day.
Justice Brown concluded that the employer should have taken steps to clarify Bru’s true intentions before
accepting her words as a resignation. The court determined that Bru had been wrongfully dismissed and
awarded her damages equivalent to three months’ notice, but denied her claims for Wallace or punitive
damages. The judge emphasized the importance of contextual interpretation in resignation cases,
especially where the employee is vulnerable and statements are made under emotional stress.

Downham v. Lennox and Addington (County), 2005 CanLII 53235 (ON SC)
In Downham v. County of Lennox and Addington, the plaintiff, William Downham, sought to amend his
statement of claim during final submissions in a wrongful dismissal trial to include a request for Wallace

damages—damages awarded when an employer acts in bad faith during termination. Defense counsel had
raised the issue early on, stating that Wallace damages were not initially pleaded, and reiterated this
concern in closing arguments. In response, plaintiff’s counsel made an oral motion to amend the
pleadings.
Justice Ferguson clarified that he had not formally granted leave to amend but only expressed that he was
inclined to do so, pending written submissions. However, a miscommunication occurred: plaintiff’s
counsel, Mr. Mack, submitted a revised statement of claim with over 11 additional pages, which the court
staff mistakenly accepted and stamped as though ordered by the judge, despite no formal order existing.
Defense counsel objected, arguing this new filing was effectively written argument disguised as a
pleading and caused prejudice.
Justice Ferguson ultimately struck the improperly filed amended statement of claim, declaring it a nullity.
However, he allowed a narrowly tailored amendment to add paragraph 45A, formally stating that the
plaintiff's dismissal was “harsh, unfair, unreasonable and carried out in bad faith and unduly insensitive,”
to satisfy any technical requirement for claiming Wallace damages. The judge found no actual prejudice
to the defense, ordered the plaintiff to pay $500 in costs related to the issue, and called on Mr. Mack to
explain why he should not personally reimburse his client for those costs and be barred from charging
fees for the erroneous amendment.
Churchill v. Stockgroup Media Inc., 2008 BCSC 578 (CanLII)
In Churchill v. Stockgroup Media Inc., the plaintiff, Tanis Churchill, brought a wrongful dismissal action
against her employer. Churchill alleged she was constructively dismissed after Stockgroup unilaterally
changed her commission structure in June 2005 and significantly reduced her sales territory in February
2006. Though she initially continued working and voiced ongoing concerns, matters escalated when she
was placed on probation in April 2006. Shortly afterward, Churchill took medical leave and never
returned to work. She claimed damages for constructive dismissal, stock option losses, and Wallace
damages for bad faith dismissal.
The court found that while Stockgroup had reserved the right to change the commission structure and had
acted fairly in doing so, the territorial realignment was a substantial change to the employment contract
and not supported by fresh consideration. As such, this constituted constructive dismissal. However, the
court held that Churchill had not clearly communicated to the employer that she would treat the territory
change as repudiation, continuing to work and even attending a business trip. It was only after she was
placed on probation that she ceased working and was deemed to have accepted the employer’s repudiation
at that point. The court ruled that placing her on probation, under these circumstances, also amounted to
constructive dismissal.
Regarding damages, the employment agreement limited compensation to statutory notice under the
Employment Standards Act, which entitled Churchill to four weeks’ wages. The court awarded her
$11,000 in lieu of notice but dismissed her claim for Wallace damages, concluding that the employer had
not acted in bad faith or with malice. The court also ruled that any loss from Churchill’s unexercised stock

options was her responsibility, given that she likely received notice of the terms. Costs were awarded to
the plaintiff based on Schedule B, subject to further submissions.

Rae v. Attrell Hyundai Suburu, 2005 CanLII 42475 (ON CA)
In the case of Misty Rae v. Attrell Hyundai Subaru, the Ontario Court of Appeal considered an appeal
from the employer, Attrell Hyundai, challenging a wrongful dismissal judgment in favour of the
respondent, Misty Rae. Rae had been employed for four years and was awarded $28,000 by the trial
judge, which included damages for lack of sufficient notice and an increase for Wallace damages due to
the manner of her dismissal. The employer argued that Rae was dishonest or had violated company policy
regarding credit authorization, which justified dismissal. However, the trial judge found no dishonesty or
fraud and noted Rae was unaware that breaching the policy could lead to termination.
On appeal, the employer contended that the trial judge made serious errors in assessing Rae’s credibility
and in awarding Wallace damages. The Court of Appeal disagreed, noting that the trial judge never
explicitly found Rae to be lacking in credibility. In fact, the employer's main argument was based on a
misinterpretation of a single statement and failed to adequately challenge Rae’s testimony at trial.
Furthermore, the employer’s evidence concerning alleged fraud was weak, particularly regarding a
disputed invoice created after Rae began maternity leave. Rae had admitted liability for a small amount
related to her mother’s vehicle, and the trial judge justifiably allowed only that limited part of the
counterclaim.
The Court of Appeal upheld the award of Wallace damages, emphasizing that the employer's
timing—terminating Rae just two weeks before she was due to give birth—constituted insensitive and
harsh treatment, meeting the threshold for additional compensation. The Court dismissed the appeal and
ordered the employer to pay $5,842.20 in costs to Rae.

Dornan v New Brunswick (Health), 2023 CanLII 10433 (NB LA)
In Dr. John Dornan v. His Majesty the King in Right of the Province of New Brunswick, Dr. Dornan, a
long-time physician and health administrator, was hired as the permanent CEO of Horizon Health
Network in March 2022 for a five-year term following an interim appointment. Despite clear verbal
agreements outlining the terms of his employment, which did not include a termination clause, Dornan
was presented with a written contract two weeks into his role that included such a clause. He felt
compelled to sign it due to his vulnerable position, having already given up his previous roles. Just four
months later, in July 2022, Dornan was abruptly terminated by the new Minister of Health, following a
public controversy over an emergency room death, though the incident was unrelated to his management.
Dr. Dornan grieved his dismissal, arguing that the termination clause in the contract was unenforceable
because it had never been part of the initial agreement and lacked proper consideration. The adjudicator
agreed, concluding that a valid oral contract had already been formed without the termination clause and
that Dornan had relied on it to his detriment. The inclusion of the clause in the later written agreement

was deemed a fundamental and invalid amendment. As a result, the adjudicator ruled that Dornan was
entitled to receive the full remaining compensation for his five-year term, including salary, car allowance,
pension, and other benefits, with the total to be determined.
Additionally, the adjudicator found that the manner of Dornan’s dismissal was unfair, public, and
reputationally damaging, especially considering the Premier’s press conference suggesting his termination
was linked to the hospital death. As a result, the employer had breached the implied duty of good faith in
termination, and Dornan was awarded $200,000 in aggravated damages. However, claims for punitive
damages, legal costs, and interest were dismissed due to lack of jurisdiction. The adjudicator retained
jurisdiction in case of disputes over the calculation of special damages.

Smith v New Brunswick (Tourism, Heritage and Culture), 2015 CanLII 54713 (NB LA)
In this adjudication under New Brunswick’s Public Service Labour Relations Act, Stephen Smith
challenged the termination of his employment as Executive Director of Culture and Corporate Services in
the Department of Tourism, Heritage and Culture. Smith, a long-time federal and provincial public
servant, had resigned from a secure CRA position in 2014 to accept what he believed to be a permanent,
non-political role with the provincial government. Less than a year later, following a change in
government, his employment was abruptly terminated without cause and he was given six months’ pay in
lieu of notice. Smith claimed that this was inadequate, given his circumstances and the significant career
risk he took in leaving his federal post.
During the hearing, Smith argued that he was induced to leave secure employment, that the termination
was unfairly handled, and that the employer failed to act in good faith—especially considering he was
denied placement on a redeployment list, not offered a reference, and dismissed without explanation just
weeks before his 50th birthday, affecting his eligibility for certain retiree benefits. Although he received
severance, Smith’s legal team contended that he was entitled to a longer notice period (22–24 months) due
to his age, the unique nature of his public service career, limited re-employment prospects, and the
perceived discrimination based on political association. The employer countered that six months was
reasonable given Smith’s short tenure in the role and challenged the extent of his mitigation efforts in
finding new employment.
Adjudicator John McEvoy ultimately rejected the claim for Wallace damages (which addresses employer
bad faith in the manner of dismissal) and found no evidence of improper conduct or mental distress
beyond typical upset. However, considering Smith’s age, qualifications, career in government, and the
reasonable expectation of long-term employment in a non-political role, the adjudicator ruled that a
12-month notice period was more appropriate. This was reduced by two months due to insufficient
mitigation efforts, resulting in a final award of 10 months’ pay in lieu of notice. The request for costs was
denied, and each party was ordered to pay half of the adjudicator’s fees, as required by the legislation.

Perkins v. Shuen et al, 2006 BCSC 121 (CanLII)

In Perkins v. Shuen et al., 2006 BCSC 121, Judy Perkins, a certified dental assistant with over 24
years of service under Dr. Armstrong, was dismissed by her new employer, Drs. Shuen and Ling,
just six months after they acquired Armstrong's dental practice. The key legal question was
whether Perkins was entitled to reasonable notice based on her full 24 years of service or only
the brief tenure under the new ownership. Despite being told she would be technically terminated
and rehired, Perkins received no formal notice or explanation that her long-standing employment
wouldn't be acknowledged. After her dismissal, she was offered only two weeks’ severance pay.
The court found that the sale of Dr. Armstrong’s practice was indeed the sale of a “going
concern,” and there was an implied term in the employment relationship with the new owners
that Perkins’ prior years of service should be recognized. Justice Ralph ruled that while her
responsibilities had slightly changed, they remained essentially the same in nature. There had
been no express communication from the new employer negating her accrued service. Therefore,
she was wrongfully dismissed when terminated without proper notice, and the court awarded her
12 months’ pay in lieu of notice, equating to $42,000 in salary.
The court dismissed Perkins' claims for Wallace and aggravated damages, finding no evidence of
bad faith or unfair dealing beyond the failure to pay minimum statutory severance. It also
rejected the employer’s argument that she had failed to mitigate her damages, concluding that her
efforts to find comparable work were reasonable. Finally, the court ruled that the original owner,
Dr. Armstrong, was not liable to indemnify the defendants, as the employment termination
occurred more than 90 days after the sale, exempting him from such responsibility under the
asset purchase agreement.

Horyn v. B.H. Shopping Centre Ltd., 2012 ABPC 323 (CanLII)
In Horyn v. B.H. Shopping Centre Ltd., 2012 ABPC 323, Darlene Horyn, a long-serving night
manager at a local grocery store operated by B.H. Shopping Centre Ltd., claimed she was
wrongfully dismissed by her supervisor, Howard Fedoretz, in April 2011. Horyn described a
toxic and degrading work environment in the weeks leading up to her dismissal, marked by
verbal abuse, public humiliation, and unfounded accusations of theft. The turning point came
during an April 10 phone call in which Fedoretz swore at her, called her a thief, and dismissed
her in the presence of co-workers. Although she briefly returned to work afterward, the judge
found this was only temporary and did not negate the wrongful dismissal.
The court found Horyn to be a credible witness and her account corroborated by coworkers, who
testified to hearing Fedoretz’s abusive language. In contrast, Fedoretz’s testimony was found to
be vague, inconsistent, and evasive. The court ruled that the employer's conduct—particularly
the manner of dismissal—constituted a fundamental breach of the employment relationship. The

judge determined Horyn had been constructively dismissed without cause and without proper
notice. Despite the employer’s arguments, there was no evidence supporting the allegations of
theft, nor did the defendant sufficiently prove Horyn had failed to mitigate her losses, especially
given her physical injury from a prior workplace assault.
As a result, the court awarded Horyn seven months’ pay in lieu of notice ($22,400), plus $4,500
in Wallace damages due to the employer’s bad faith and emotional harm caused by the dismissal.
After subtracting mitigation income, the final damage award totaled $25,369.57. Additionally,
she was granted $1,250 in court costs and other associated fees. While Howard Fedoretz was not
found personally liable for wrongful dismissal, his conduct directly contributed to the store’s
liability and the award of moral damages.
Desforge v. E-D Roofing Limited, 2008 CanLII 48130 (ON SC)
In Desforge v. E-D Roofing Limited, the plaintiff, Lawrence Desforge, brought a wrongful
dismissal claim against his former employer after being terminated without notice or severance
following 18 years of service. The defendant, a small roofing company, alleged cumulative
performance issues and workplace conflicts as the basis for termination. Though the employer
argued for a longer notice period of 18 months to offset damages through mitigation, the plaintiff
sought only 13 months’ notice, strategically selected because he had begun earning more than his
prior salary after that point. The court ultimately agreed with the plaintiff’s requested notice
period of 13 months, awarding damages based on an average of his earnings from the last four
years of employment.
The court found that Desforge made reasonable efforts to mitigate his losses. He sought other
employment before and immediately after a pre-scheduled vacation and secured work soon after
his return. Though laid off briefly in early 2006, Desforge returned to employment shortly
thereafter, eventually earning more than he had with the defendant. The court calculated his total
lost earnings during the 13-month notice period to be $73,570.25 and deducted $55,428.45
earned through mitigation, awarding $18,141.80 in damages. Importantly, the court ruled that
Employment Insurance benefits should not be deducted from the damage award, as established in
prior case law.
Regarding “Wallace damages” for bad faith in the manner of dismissal, the court found the
employer’s conduct did not rise to the necessary level of malice or insensitivity. Although there
were miscommunications and poor timing around the dismissal, there was no evidence of
deliberate humiliation or reputational harm. The court emphasized that ordinary emotional
distress from losing a job is not compensable, and no medical evidence supported the claim of
mental distress tied to the dismissal process. As such, the court declined to award additional

damages for the manner of dismissal, and the plaintiff was awarded a total of $18,141.80 plus
interest.
Evangelista v. Number 7 Sales Limited, 2008 ONCA 599 (CanLII)
In Evangelista v. Number 7 Sales Limited, the Ontario Court of Appeal upheld the trial judge’s
decision in favor of Mario Evangelista, who was found to have been constructively dismissed by
his employer. Evangelista, a 58-year-old used car sales manager with over 30 years of
experience, had worked with the appellant for 16 years when his commission-based
compensation was unilaterally reduced first from 30% to 18%, and then proposed to be reduced
again to 9%. The trial judge accepted that the final proposed reduction, without
performance-based justification, constituted a fundamental breach of the employment contract,
warranting a finding of constructive dismissal. The court also found the proposed changes led
Evangelista, who was suffering from depression, to take medical leave and eventually sue for
wrongful dismissal.
The Court of Appeal agreed with the trial judge’s assessment that Evangelista was entitled to 15
months’ notice, taking into account his age, long tenure, senior managerial role, and the
difficulty of finding comparable employment. The trial judge also awarded three months of
Wallace damages for bad faith conduct in the dismissal process. This included pressuring
Evangelista during a period of poor health and creating a “toxic work environment.” The
appellate court concluded these findings supported the trial judge’s decision and were consistent
with the principles outlined in Wallace v. United Grain Growers and Honda v. Keays.
Evangelista was also found to have reasonably attempted to mitigate his losses by searching for
jobs within his field, and the court rejected the employer’s argument that he failed to mitigate by
not applying for disability benefits.
Additionally, the Court of Appeal upheld the award of unpaid public holiday and vacation pay
under the Employment Standards Act. The employer had not provided these payments from 1996
to 2003 and failed to maintain the required records. The court rejected the argument that
Evangelista was exempt from these benefits due to spending one day a week off-site, finding that
the legislative exemption applied only to salespeople who normally worked away from the
employer’s premises—which was not the case here. It also found that the employer could
monitor his work and that his entitlement to vacation and public holiday pay was not barred by
statutory limitation periods due to delayed discoverability. The appeal was dismissed, and the
employer was ordered to pay $15,000 in costs.

General Motors of Canada Limited v. Johnson, 2013 ONCA 502 (CanLII)
In General Motors of Canada Ltd. v. Johnson, the Court of Appeal for Ontario overturned a trial decision
that had awarded damages to Yohann Johnson, a Black production supervisor who claimed constructive

dismissal based on a poisoned work environment due to racism. The initial conflict arose when a
coworker, Markov, refused to attend mandatory training with Johnson, citing a past incident in which
Johnson had allegedly laughed at an insensitive remark about the murder of Markov’s brother. Johnson
perceived Markov’s refusal as racially motivated and filed a complaint. Despite three internal
investigations by GM that found no evidence of racism, Johnson remained unsatisfied and took a medical
leave, claiming disability due to racism. Two years later, GM offered Johnson comparable supervisory
roles in different locations, but he declined without medical justification, prompting GM to consider his
refusal as a resignation.
The trial judge found that Johnson had been the target of racism, concluding that his workplace was
poisoned and that GM had constructively dismissed him by failing to provide a safe, discrimination-free
environment. The trial judge awarded Johnson over $150,000 in damages, including wrongful dismissal
and Wallace damages. However, the Court of Appeal found that these conclusions were unsupported by
the evidence. There was no direct proof that Markov's actions were racially motivated, and Johnson
himself had initially accepted GM’s resolution of the conflict. The Court ruled that a single disputed
incident, particularly without corroborating evidence or repeated conduct, did not meet the threshold for
establishing a poisoned work environment or constructive dismissal.
Ultimately, the Court of Appeal held that the trial judge's findings were unreasonable and legally flawed.
GM had responded to the complaint with multiple investigations, disciplined Markov, and attempted to
accommodate Johnson’s return to work. Johnson’s refusal to accept alternate employment without
substantiating his ongoing disability was not grounds for constructive dismissal. The appellate court
dismissed Johnson’s claim entirely, reversing the damages awarded at trial, and declined to order costs,
respecting GM’s position not to seek them.
Robinson v. Team Cooperheat-MQS Canada Inc., 2008 ABQB 409 (CanLII)
In Robinson v. Team Cooperheat-MQS Canada Inc., Edward Robinson sued his former employer for
wrongful dismissal, seeking 22–24 months of pay in lieu of notice. Robinson, who had a long-standing
relationship with Cooperheat, was employed as a branch manager and earned approximately $140,000
annually. The dispute arose following a February 1, 2005 meeting where Robinson allegedly expressed
dissatisfaction after facing criticism from colleagues and supervisors regarding his management style.
While Cooperheat claimed Robinson verbally resigned during this meeting, Robinson maintained he did
not intend to resign and attempted to retract any such implication the very next day. The company,
however, treated his words as a resignation and refused the retraction, formally ending his employment
later that month.
The court analyzed whether Robinson had truly resigned or was wrongfully dismissed. The evidence,
including testimonies from meeting participants, suggested that Robinson’s statements during the
emotionally charged meeting were not clear or unequivocal. Witnesses confirmed that Robinson never
explicitly said "I resign," and the statements attributed to him reflected frustration rather than a definitive
resignation. The judge also emphasized that resignations made in emotional or pressured circumstances
cannot be considered valid unless they are clear and deliberate. Furthermore, Robinson attempted to

withdraw any suggestion of resignation before the company took steps to act on it, meaning his
employment termination was not justified on the basis of resignation.
Ultimately, the court ruled in favor of Robinson, finding that he had been wrongfully dismissed. Taking
into account his age (62), senior role, long tenure (over 17 years of continuous service), and the limited
prospects of comparable reemployment, the court awarded Robinson 18 months’ pay in lieu of notice.
However, the court did not grant the additional special damages he sought for relocation, medical costs, or
insurance, as these lacked sufficient evidentiary support or were deemed to be double recovery. While the
court acknowledged Robinson’s emotional distress following the dismissal, it concluded he failed to
adequately mitigate his losses, leading to a partial reduction in the final award.
Sitaram v. 246266 Ontario Limited (Peel Truck and Trailer Ltd.), 2009 CanLII 28228 (ON
SC)
In Dhanraj Sitaram v. 246266 Ontario Limited (c.o.b. Peel Truck and Trailer Ltd.), the trial commenced in
December 2008 and concluded in January 2009 with a mid-trial settlement. The parties agreed that the
defendant would pay the plaintiff $21,000 in general damages, and costs were to be determined by the
trial judge. Justice Flynn had given clear directions regarding the timeline and format for cost submissions
from both parties. However, the plaintiff’s counsel failed to meet the court's deadline and did not provide
the required documentation until April 1, 2009—six weeks late and without any explanation. As a result,
Justice Reilly declined to consider the plaintiff’s late submissions in his cost ruling.
Justice Reilly then reviewed the defendant’s cost submissions. He noted that the defendant had previously
made a settlement offer before trial that appeared at least as generous as the final $21,000 settlement.
Although the defendant initially pursued a “just cause” defence, it was abandoned before trial. On the
other hand, the plaintiff maintained claims for punitive and “Wallace” damages throughout the
proceedings, which the judge considered unfounded in light of prevailing legal standards, including the
Supreme Court’s decision in Keays v. Honda. Given these factors and the fact that the matter could have
been resolved earlier, the judge acknowledged that under normal circumstances, he might have considered
awarding costs to the defendant under Rule 49.10.
However, the defendant expressly requested that no costs be awarded, or if they were, they be capped at
$3,000. Justice Reilly respected this modest request and ruled that no costs would be awarded to either
party. He emphasized that while the plaintiff's lawsuit was justified, it was unfortunate the matter went to
trial when it could have been settled earlier. He also criticized the plaintiff’s counsel for failing to comply
with court orders and for not explaining the delay in filing cost submissions—though he doubted the
submissions would have changed the outcome.

Spinks v. Carlisle Corporation of Canada, 2007 CanLII 8643 (ON SC)
In Spinks and Lalonde v. Altec/Carlisle, the Ontario Superior Court of Justice dealt with wrongful
dismissal claims by two former employees, Michelle Spinks and Michael Lalonde, who were terminated
on the same day in September 2004. Both plaintiffs had worked for the company for several

years—Lalonde for 14 years and Spinks for over two. Their dismissals followed the resignation of
Michael’s brother, Andre Lalonde, a former General Manager who went on to create a competing
business. Though no cause was initially stated, Altec later alleged cause at trial, citing issues like timecard
fraud, misuse of company property, and disloyalty due to connections with Andre. Justice Milanetti,
however, found no evidence sufficient to support these allegations and held that both plaintiffs had been
wrongfully dismissed.
The Court found that the terminations were more likely motivated by suspicion and internal corporate
politics following Andre Lalonde’s departure than by any misconduct. Evidence from company witnesses,
including Finance Manager Laurie Macyszyn, showed that company policies under Andre allowed for
flexible and informal practices such as banking overtime and using an honour system for time reporting.
These practices were well known and had not been formally disciplined, weakening the defendant's
argument for cause. The judge was particularly critical of how the terminations were handled—both
employees were escorted out without warning or explanation, in a manner deemed humiliating and
unjustified.
As a result, Justice Milanetti awarded Michael Lalonde 14 months' notice pay, totaling approximately
$15,159 after deductions. Wallace damages were considered but not awarded in his case. Michelle Spinks,
on the other hand, received four months’ notice pay (including one month added for Wallace damages due
to the employer’s poor conduct), totaling $12,716.10. The court also granted Spinks her owed vacation
pay and acknowledged the company’s failure to properly address claims for banked lieu time. The
judgment highlights employer responsibilities in executing fair dismissals and warns against making
unsubstantiated allegations of misconduct.

Association of Management, Administrative and Professional Crown Employees of Ontario
(Bokhari) v Ontario (Economic Development, Employment and Infrastructure), 2016
CanLII 51073 (ON GSB)
In the arbitration case Bokhari v. Ministry of Economic Development, Employment and Infrastructure,
the Grievance Settlement Board ruled that the employer discriminated against Mr. Imran Bokhari due to
his disability by failing to accommodate his medical needs, and further acted in bad faith by declaring his
position surplus. Mr. Bokhari, who had a history of depression and other health conditions, was
transferred to the Ministry in 2010 and soon encountered resistance to his requests for accommodations
related to his disability. Despite medical evidence supporting a later start time due to his symptoms, his
manager refused to consider the request, insisted on rigid core hours, and escalated the situation rather
than seek solutions. Eventually, the employer falsely claimed restructuring needs and declared his position
surplus. He was then publicly and humiliatingly escorted out, denied access to his workspace and tools,
and not offered other roles, unlike others in similar positions.
AMAPCEO, the union representing Bokhari, sought several remedies, including reinstatement, general
damages, punitive damages, and damages for injury to dignity. The Board rejected reinstatement due to
the time that had passed and the likelihood of future conflict, but awarded $8,000 in lieu of reinstatement.
It further awarded $20,000 in general damages for the breach of Bokhari’s rights and an additional

$25,000 for the injury to his dignity, feelings, and self-respect, citing the employer’s particularly
egregious conduct. The Board emphasized that the misconduct was deliberate and sustained by senior
management and went beyond a failure to accommodate—it included humiliation and mistreatment that
exacerbated Mr. Bokhari’s already fragile mental health. However, the Board denied Wallace damages
and punitive damages, finding that the compensatory amounts already ordered were sufficient to address
deterrence and denunciation.
The ruling reinforced the importance of meaningful accommodation under the Ontario Human Rights
Code and collective agreement, and clarified that damages can be awarded even where there is no
financial loss if an employee’s dignitary rights are violated. While Bokhari remained employed in a
comparable role, the Board emphasized that being paid to stay home is not equivalent to meaningful
work. The decision underscores employers’ responsibilities not only to accommodate disabilities but to do
so in good faith, and warns against misusing managerial powers to remove difficult employees under the
guise of restructuring.

Seeley v. Bob Brown Pontiac Buick GMC Ltd., 2002 BCPC 500 (CanLII)
In Seeley v. Bob Brown Pontiac Buick GMC Ltd., the claimant, Stuart Seeley, a journeyman auto
mechanic with years of experience and a history of good performance, was dismissed from his job
following a series of minor workplace incidents. The employer claimed just cause for dismissal due to
Seeley's alleged negative attitude and inappropriate conduct towards a colleague, Mindy Wilander.
However, the court found the employer’s response to be arbitrary and unfair. The incidents leading to
dismissal, such as a disagreement over timekeeping and a brief street encounter where a piece of paper
was handed or lightly tossed into a colleague's car, were not serious enough to justify termination.
Furthermore, the employer failed to conduct a thorough and balanced investigation, nor did it allow
Seeley the opportunity to explain his side.
Judge Granary ruled that the employer had not met the legal threshold for just cause. While Seeley may
have had a reputation for a “negative vibe,” no significant disciplinary history was presented, and his
performance was otherwise commendable. The judge determined that Seeley was wrongfully dismissed
and entitled to damages for the lack of reasonable notice. Taking into account Seeley’s age, qualifications,
length of service, and the context of the dismissal, the court awarded him eight months' worth of damages.
Since Seeley found a lower-paying job three weeks after his termination, the compensation covered lost
income for the short period of unemployment and the wage difference over the remainder of the notice
period.
Ultimately, Seeley was awarded $10,000 in damages (the court's jurisdictional limit), plus interest and
$245 in costs. Additionally, the court imposed a $1,000 penalty on the defendant for rejecting Seeley’s
pre-trial settlement offer of $5,000. The judge criticized the employer’s continued refusal to acknowledge
the wrongful dismissal and emphasized that its conduct both before and during the trial reflected poor
judgment and a lack of fairness. The case serves as a reminder that dismissals must be based on
substantial and well-investigated grounds, and employers must engage in fair dealing, especially in cases
involving long-term, high-performing employees.

Ludchen v. Stelcrete Industries Ltd., 2013 ONSC 7495 (CanLII)
In Ludchen v. Stelcrete Industries Ltd., the plaintiff, Richard Ludchen, a long-time employee and plant
superintendent, was terminated for cause without notice by his employer, Stelcrete, in February 2008. The
company alleged that Ludchen made anti-Semitic remarks about the owners in response to the company’s
decision not to observe the new public holiday, Family Day. The accusation stemmed from statements
allegedly relayed by an undercover private investigator named Stacey, who was originally hired to
investigate drug use at the plant. Ludchen denied making such remarks and claimed wrongful dismissal,
seeking damages, including aggravated and punitive damages.
The court examined the credibility of the witnesses extensively, particularly that of Stacey, whose
testimony was found to be inconsistent, exaggerated, and lacking documentation. The judge noted serious
flaws in Stelcrete's handling of the situation, including a complete lack of investigation or corroboration
of the serious allegations prior to terminating Ludchen. Stacey’s testimony was contradicted by other
employees, and none of the workers on Ludchen’s shift confirmed hearing the offensive comments. The
only post-termination supporting evidence came from a supervisor in a different department, whose late
disclosure and conflicting testimony undermined its reliability. The judge concluded that Stelcrete did not
meet the burden of proof to justify dismissal for cause.
As a result, the court found that Ludchen was wrongfully dismissed and entitled to 12 months' notice. He
was awarded $35,284 in damages, which included lost salary, benefits, and bonus compensation, less his
income earned during the notice period. The claims for aggravated and punitive damages were dismissed
due to lack of supporting evidence. The judgment highlighted the importance of proper investigation and
fair process in employment terminations, particularly when serious allegations like discriminatory
conduct are involved.
Linton v. The Ethical Bean Coffee Company Ltd., 2012 BCPC 212 (CanLII)
In Linton v. The Ethical Bean Coffee Company Ltd., Jeffrey Linton sued his former employer for
wrongful dismissal after being terminated from his position as food services sales manager. Ethical Bean
claimed Linton was dismissed for cause due to underperformance on Key Performance Indicators (KPIs)
and referenced a contractual clause limiting notice to the Employment Standards Act minimum. However,
the court found that Ethical Bean failed to clearly communicate the KPIs as a condition of continued
employment or provide adequate documentation of their expectations. The judge concluded that the
dismissal was not for just cause and noted inconsistencies in the employer's shifting reasons for
termination, from restructuring to performance-based dismissal.
The court also rejected the claim that a valid employment contract limited Linton's entitlement to
statutory notice. The defendant failed to prove Linton had received or signed such a contract, and the
court found the terms ambiguous. Instead, applying the common law principles from Bardal v. Globe &
Mail, the judge found Linton’s position was mid-level management in a specialized sales role with nearly
three years of service. A reasonable notice period of four months was awarded. Additionally, due to the
employer’s bad faith conduct—including changing the dismissal reason post-termination and rescinding a

promised reference letter—the court awarded an extra month of pay as Wallace damages, bringing the
total to five months.
The judge found Linton had not failed to mitigate his damages, as the job opportunity cited by the
employer was not a formal offer and its compensation was significantly lower than his previous role. The
employer's behavior—such as making veiled threats about cause and withholding a reference—also
hindered Linton’s ability to seek comparable employment. Ultimately, the court awarded Linton
$20,183.42 in damages, plus $176 in costs, and dismissed the employer’s counterclaim. A payment
hearing was scheduled to determine how the award would be paid.

White v. John White Limited, 2007 NSSM 27 (CanLII)

In White v. John White Limited, Timothy White brought a claim against his former employer for
wrongful dismissal, arguing that he was terminated without just cause after more than three years of
service as a commissioned salesperson. The employer originally claimed that the dismissal was due to
corporate restructuring but later alleged just cause, citing performance issues. White contended that he
met his sales targets for 2004 and was not informed that his job was at risk prior to being terminated on
April 28, 2005. He sought damages for wrongful dismissal, including unpaid commissions for work on a
Newfoundland Power contract, and compensation in lieu of notice.
The court examined both the dismissal and the disputed commissions. It found that the employer’s claim
of just cause was not substantiated, especially since White had received a positive performance evaluation
shortly before his termination. Additionally, the claim that extensive work was required to secure the
Newfoundland Power deal post-termination was contradicted during cross-examination. The court
determined that White’s involvement substantially contributed to the sale and awarded him $2,000 in
commission for the trucks, despite the employer’s refusal to compensate him. The court concluded that
the dismissal was not for cause and that the company had an obligation to provide reasonable notice or
pay in lieu.
Considering White’s length of service, position, age, and quick re-employment, the court determined that
a three-month notice period was appropriate. Using his historical earnings and projected commissions, the
court calculated damages in lieu of notice at $17,904.13, plus $2,000 for the Newfoundland Power
commission, less amounts already received. The court also addressed the duty to mitigate, finding that
White made reasonable efforts to secure new employment and thus did not fail in his obligation to
mitigate losses. The court declined to award additional damages under Wallace v. United Grain Growers,
finding no evidence of bad faith in the manner of dismissal.
Fox v. Silver Sage Housing Corporation, 2008 SKQB 321 (CanLII)
In Fox v. Silver Sage Housing Corporation, William Fox claimed wrongful dismissal after being
terminated from his 13-year employment with Silver Sage, a non-profit housing organization. Initially
hired in 1991 as maintenance manager, Fox rose to housing supervisor, managing both maintenance and
client services staff. His role was diminished in 2004 following a reorganization led by General Manager

Byron Langan, which limited his responsibilities to client services and ultimately led to the elimination of
his position. Silver Sage cited budget cuts as the reason for his dismissal, awarding him minimal
severance under their personnel policy. Fox sought common-law damages, arguing that the dismissal
lacked transparency and fair treatment.
The court found that the personnel manual Silver Sage relied on was not a binding employment contract
and could not limit Mr. Fox to statutory minimum notice. Applying the Bardal factors—age, position,
length of service, and reemployment prospects—the court determined that Fox, a 51-year-old manager
with limited formal education, was entitled to 12 months’ notice. The court awarded him damages
equivalent to a year’s salary with a bonus and raise, minus what he had already been paid and earned
during the notice period. It rejected Silver Sage's claim that Fox had already been fully compensated
under the Canada Labour Code.
Regarding Fox’s claim for Wallace damages for bad faith, the court found that while Silver Sage,
particularly through Langan’s actions, had not acted in good faith—demonstrated by unnecessary
restructuring and a vindictive letter to Fox's wife’s employer—Fox had not proven that these actions
caused him additional compensable harm. Therefore, although the employer’s conduct was improper and
orchestrated to remove Fox under the guise of budgetary concerns, no further damages were awarded
beyond the notice period compensation.
Mastrogiuseppe v. Bank of Nova Scotia, 2007 ONCA 726 (CanLII)
In Mastrogiuseppe v. Bank of Nova Scotia, the plaintiff, Amy Mastrogiuseppe, was wrongfully dismissed
from her position at the Bank of Nova Scotia. The trial judge found that the Bank had not established just
cause for termination, and the Court of Appeal agreed, upholding the trial judge’s decision that the Bank
failed to justify dismissal. The Bank accepted the award of 22 months’ pay in lieu of notice, which the
court found appropriate considering Mastrogiuseppe’s length of service and position.
The Court of Appeal, however, partially disagreed with the trial judge’s assessment of Wallace damages,
which are awarded when an employer acts in bad faith during dismissal. While the court agreed that such
damages were appropriate, it found the trial judge had considered irrelevant factors in awarding eight
months of additional damages. Notably, the Bank’s actions—such as alleging dishonesty, withholding a
reference letter, and couriering the respondent’s belongings—were not considered acts of bad faith. As a
result, the appellate court reduced the Wallace damages to four months.
Despite this adjustment, the Court upheld the trial judge’s award of $25,000 in punitive damages. It found
the Bank’s conduct—specifically blacklisting Mastrogiuseppe’s relatives and unlawfully withdrawing
funds from her account at another bank—was oppressive and high-handed. These actions warranted
punishment and deterrence, justifying the punitive award. The appeal was thus allowed in part, modifying
the damages awarded, but largely affirming the seriousness of the Bank’s misconduct.

Kostic v Piikani Nation, 2024 ABKB 40 (CanLII)

In Kostic v. Piikani Nation, the plaintiff, Liliana Kostic, sought to proceed with a damages assessment
following a 2017 Alberta Court of Appeal decision which found her investment management agreement
with the Piikani Nation to be valid and enforceable. The Court of Appeal had concluded that her claim for
damages stemming from the premature termination of this seven-year agreement warranted further
examination by a trial court, particularly concerning income loss and the manner of her termination.
However, the Nation disputes any definitive ruling on liability and argues that the existence of a breach
and their potential defences still require a full trial.
Justice Graesser, overseeing case management, noted the ongoing disagreement regarding whether the
Court of Appeal had conclusively established the Nation’s liability. While Ms. Kostic believes that the
only issue left is the quantification of damages, the Nation maintains that a trial is necessary to determine
liability. Justice Graesser observed that, though the Court of Appeal indicated damages could be assessed,
it did not preclude the possibility of further litigation on liability. Given the complexity of the issues and
multiple overlapping lawsuits involving similar claims by Ms. Kostic, the judge emphasized the need for
strategic coordination.
In light of these circumstances, Justice Graesser ruled that a unified damages trial should be scheduled
ahead of any trials on liability, likely in early 2025. He noted that this approach would help clarify the
scope of potential damages and assist in resolving the broader litigation efficiently. The judge
acknowledged that Ms. Kostic's claims are multifaceted—spanning contractual breach, potential
“Wallace” damages related to her termination, and personal losses attributed to reputational harm and
prolonged unemployment. All parties involved were directed to prepare for the next steps in the case
management process, including trial readiness updates and scheduling.
Cimpan v. Kolumbia Inn Daycare Society, 2006 BCSC 1828 (CanLII)

In Cimpan v. Kolumbia Inn Daycare Society, the plaintiff, Rodica Cimpan, claimed she was wrongfully
dismissed from her role as an Early Childhood Educator at K.I.D.S., where she had been employed since
1994. Her termination in November 2005 followed a series of three incidents where she failed to attend
scheduled shifts, most notably on September 23, 2005, when she went to a doctor’s appointment without
prior approval from her supervisor. The employer argued that these actions amounted to insubordination
and justified dismissal. However, the Court found that while Ms. Cimpan had violated workplace policy
by failing to directly notify her supervisor or arrange a substitute, she did not act with wilful disregard or
malicious intent, and her actions did not amount to just cause for termination.
Justice Truscott concluded that Ms. Cimpan’s conduct did not warrant dismissal and deemed her
termination wrongful. Nonetheless, although she was entitled to nine months of reasonable notice based
on her length of service and position, the Court found that she failed to mitigate her damages. Rather than
seeking comparable employment, she pursued a self-employment program to eventually start her own
daycare business, despite there being available jobs in her field. The judge emphasized that while
self-employment can be a valid form of mitigation, it must follow genuine and unsuccessful attempts to

find similar employment, which Ms. Cimpan did not make. As a result, despite the wrongful termination,
she was not awarded damages.
The Court also denied Ms. Cimpan’s claim for Wallace damages, finding no evidence that the employer
acted in bad faith or unfairly in the manner of dismissal. Additionally, the Court declined to award
compensation for unpaid salary during the week of her suspension while her conduct was under
investigation, deeming it reasonable under the circumstances. Ultimately, the plaintiff’s entire claim for
damages was dismissed due to her failure to mitigate, and the defendant was awarded costs, with the
exception of cancellation fees related to the expert witness, which the Court ordered the defendant to
cover.

Hickaway v Riddell Kurczaba Architecture Engineering Interior Design Ltd, 2019 ABQB
646 (CanLII)
In Hickaway v. Riddell Kurczaba Architecture Engineering Interior Design Ltd., the Court dealt with a
wrongful dismissal claim by Jeffrey Hickaway, a senior architectural technologist who had worked for the
defendant firm for over three years. Mr. Hickaway was terminated in November 2008, allegedly due to a
lack of work. However, the employer later attempted to justify the dismissal for cause, citing
insubordination, performance issues, and inappropriate conduct. The Court found that while there were
some internal concerns and communication issues, Riddell Kurczaba failed to provide sufficient warnings
or follow progressive discipline procedures. The judge concluded that there was no just cause for
dismissal and that Mr. Hickaway had been wrongfully terminated.
The Court awarded Mr. Hickaway seven months’ salary in lieu of notice, overtime compensation, a final
quarterly bonus, unpaid expenses, and benefits totaling $57,177.92, minus severance already paid. The
Court rejected Mr. Hickaway’s claim for Wallace damages, finding that while the employer mishandled a
vehicle transfer and reported the car stolen, both parties bore responsibility for miscommunication, and
the conduct did not meet the threshold of bad faith in the dismissal process. The judge also emphasized
that although Mr. Hickaway was highly competent and a dedicated worker, the employer’s handling of the
termination lacked the proportionality and fairness required to uphold a dismissal for cause.
Riddell Kurczaba’s counterclaim was also dismissed. The firm accused Mr. Hickaway of breaching a
non-compete clause by contacting former clients and using confidential information. However, the Court
found that any breach was minimal, not intentional, and no actual damages were proven. Furthermore, the
clause itself was arguably unenforceable due to its broad scope and lack of geographic limitation. The
judge concluded that Mr. Hickaway’s actions did not warrant liability, especially given the employer’s
own failure to communicate openly prior to termination. As such, judgment was granted in Mr.
Hickaway’s favour, with interest and costs.

Finlan v. Ritchie Bros. Auctioneers (Canada) Ltd., 2006 BCSC 291 (CanLII)
In Finlan v. Ritchie Bros. Auctioneers (Canada) Ltd., the plaintiff, John Finlan, was hired in 1999 as Chief
Information Officer (CIO) under a contract that limited his notice upon termination to one week per year

of service. When Ritchie Bros. terminated him in 2004, they provided an ex gratia payment of six
months’ salary. Mr. Finlan sued, arguing the contract was unconscionable and sought common law
damages, including compensation for bonuses, RRSP contributions, and stock options he would have
earned during a longer notice period. He also pursued Wallace damages, claiming the dismissal was
handled in bad faith.
The Court analyzed whether the employment contract was unconscionable by considering inequality of
bargaining power, abuse of that power, and unfairness of the result. The Court found that Mr. Finlan, an
experienced IT executive, was not in a vulnerable position when negotiating the contract. He had
voluntarily pursued the job, understood the defined notice clause, was given time to review the
agreement, and chose not to seek legal advice. The Court held there was no evidence of coercion or unfair
bargaining, and the contract was enforceable. Furthermore, although RBA had discretionary bonus and
benefit programs, the Court found these were not guaranteed or integral to Mr. Finlan’s compensation and
did not have to be paid during the notice period.
Justice D. Smith concluded that RBA treated Mr. Finlan fairly in the termination process. They were
professional during the dismissal, offered a generous severance above the contractual minimum, and
attempted to protect his dignity by informing staff that he had resigned. Mistakes such as listing
“dismissal” on his Record of Employment were clerical and promptly corrected. Since the termination
was not conducted in bad faith, the Court denied Wallace damages. As the contract was enforceable and
Mr. Finlan received more than he was contractually entitled to, his claim was dismissed with costs
awarded to RBA.

Reglin v. Creston (Town), 2005 BCCA 635 (CanLII)
In Reglin v. Town of Creston, the case centered around Mr. Jerome Reglin's claim for wrongful dismissal
against the Town of Creston. Mr. Reglin, who had served as a municipal employee for over five years,
was dismissed without being granted a hearing. Although the Town initially provided four months’
severance pay, the trial judge found that this was inadequate given the employer’s failure to afford
procedural fairness. As a result, the trial court awarded Mr. Reglin eight months’ compensation, citing
Wallace damages due to the Town’s failure to provide a hearing. This extension of notice was meant to
serve both as compensation and a sanction for the Town’s conduct.
The calculation of damages was initially left to the parties’ counsel, but when disputes arose over the
inclusion of benefits, the matter returned to court. The trial judge clarified that the damages were intended
to include the full value of all benefits the Town would have paid during the eight-month notice period,
not merely what Mr. Reglin personally lost. The judge emphasized that the calculation should be based on
what the Town paid in salary and benefits before termination, with adjustments made for what Mr. Reglin
earned from other sources during the first four months post-dismissal.
The Town of Creston attempted to appeal, but filed its notice of appeal a year after the June 2004 ruling.
The Court of Appeal, in chambers, ruled that the appeal was filed out of time. The Court found that the
main issues—liability, damages, Wallace damages, and benefits—had all been decided in the 2004
judgment, with the 2005 hearing only clarifying the calculation method. Since the core decision occurred

in 2004, the appeal clock had started then. No extension of time was sought by the Town, so the appeal
was quashed, with costs awarded to Mr. Reglin.
Wallace v. Commercial Electronics Ltd., 2021 BCCRT 368 (CanLII)

In the case Wallace v. Commercial Electronics Ltd., 2021 BCCRT 368, the dispute arose after John
Wallace purchased a PSB Imagine centre channel speaker from Commercial Electronics Ltd. on a
layaway plan. Wallace claimed that the speaker was incompatible with his stereo system and sought a
$598 refund. Commercial refused the refund, asserting the speaker was discontinued and non-returnable.
Instead, both parties agreed to place the speaker on consignment, where it remained unsold. Wallace
claimed that Commercial should be held liable for selling him a product not suited to his needs and
requested compensation under the Sale of Goods Act (SGA) and for alleged misrepresentation.
The Civil Resolution Tribunal (CRT) found that Wallace had not met the requirements under section 18(a)
of the SGA. Although he argued that Commercial was aware of his stereo setup—since they had serviced
it prior—the Tribunal found no clear evidence that Wallace communicated his specific requirements at the
time of purchase or that he relied on Commercial’s advice. Instead, it was established that Wallace himself
requested the specific brand and model of the speaker. The CRT emphasized that buyer awareness and
reliance on the seller's expertise are essential elements for a claim under the SGA, and Wallace did not
meet this burden of proof.
Additionally, Wallace’s claim of misrepresentation was dismissed due to a lack of evidence showing that
Commercial had made any false or misleading statements about the speaker's compatibility. The Tribunal
concluded that no misrepresentation occurred because Commercial did not give any compatibility advice
and was unaware of Wallace’s setup when the sale took place. Since Wallace was unsuccessful in his
claims, he was not awarded any CRT fees, and the Tribunal ordered no action against Commercial. The
case was ultimately dismissed.

Care Group International Inc. v. Atkins, 2008 ABQB 577 (CanLII)
In Care Group International Inc. v. Atkins, 2008 ABQB 577, the Court of Queen’s Bench of Alberta
dismissed an appeal brought by the employer, Care Group International Inc., against a Provincial Court
ruling that awarded damages to James Atkins for wrongful dismissal. Atkins, a journeyman electrician,
had been hired for a renovation project and was terminated before the agreed-upon end of his contract,
which was set to conclude upon final electrical inspection approval. The trial judge found this was a
breach of contract and awarded both compensatory and Wallace damages due to the employer’s callous
and damaging treatment of Atkins, including questioning his professional competency.
On appeal, Care Group argued several issues, including procedural errors, misapplication of the
Employment Standards Code, industry custom, and improper awarding of Wallace damages. Justice
Sulatycky found no merit in the employer's arguments. The claim of issue estoppel based on a prior
Alberta Labour ruling was rejected because that earlier decision involved only overtime pay and not pay
in lieu of notice, and issue estoppel had not been properly pled. The employer also attempted to

misrepresent procedural facts and assert legal errors that had no basis in the evidence or legal standards.
The court held that the Employment Standards Code did not override common law remedies in this case,
especially since there was a specific employment agreement in place with a defined term.
Finally, the court found the trial judge’s credibility assessments and factual findings to be supported by
the record and not subject to interference on appeal. The award of Wallace damages was justified due to
the employer’s harsh dismissal conduct. The appeal was dismissed in its entirety, with the employer
ordered to pay $1,000 in costs plus disbursements to the unrepresented respondent, Mr. Atkins.

Schnitzler v. Sears Canada Inc., 2006 CanLII 33677 (ON SC)
In Schnitzler v. Sears Canada Inc., the Ontario Superior Court of Justice addressed a wrongful dismissal
claim by Kathy Schnitzler, a 30-year Sears employee who was terminated after allegedly breaching
company policy by taking cosmetic items to her car without authorization during a store relocation.
Schnitzler, who was suspended and later fired following surveillance and a search of her car, argued that
she intended to transport the items—many of which were testers—to the new store, a claim Sears
disputed. The employer also contacted the police, leading to criminal charges against Schnitzler, of which
she was ultimately acquitted. However, Sears maintained that the dismissal was warranted due to her
long-standing pattern of disregarding company policies, documented through numerous written warnings
and disciplinary actions in her personnel file.
The court determined that Sears had just cause for dismissal, citing Schnitzler’s repeated violations of
company policies over several years, including warnings related to misuse of discounts, fraudulent
appointment bookings, and inappropriate conduct. The court concluded that her actions in taking
company merchandise without proper authorization, especially in light of a clear policy discussed just the
day before the incident, amounted to a serious breach of trust. The court emphasized that honesty and
adherence to policy are essential in a retail setting, and found that the cumulative history of
non-compliance made termination appropriate. The judge noted that even if theft wasn’t definitively
proven, the breach itself justified dismissal.
Schnitzler’s claims for wrongful dismissal damages, extended Wallace damages for bad faith in dismissal,
and punitive damages were all rejected. The court found no evidence of malice or bad faith in how Sears
handled the dismissal or in their decision to involve police. While acknowledging her emotional distress,
the court found no medical evidence to substantiate any long-term psychological harm. Since Sears had
cause to terminate her employment and had acted within policy, the claim was dismissed in its entirety,
with costs awarded to the defendant.

Armstrong v WSIB, 2019 ONSC 6233 (CanLII)
In Armstrong v. Workplace Safety and Insurance Board (2019 ONSC), the plaintiff, Peter Armstrong,
brought a wrongful dismissal claim after being terminated without cause following a WSIB
reorganization. He sought damages for lost income and requested that his severance and accrued
entitlements be paid as salary continuance so he could continue accruing pension benefits. Armstrong also

referenced the treatment of other former employees, alleging WSIB had previously allowed them to
structure severance packages to maximize pension advantages, and claimed he had been denied fair and
consistent treatment.
The WSIB moved to strike specific paragraphs in Armstrong’s claim that detailed the termination terms of
other employees, arguing those references were irrelevant and would unnecessarily complicate the case.
Master Sugunasiri agreed, stating that the assessment of wrongful dismissal damages must focus on the
individual employee’s circumstances—not on how others were treated—because each termination is
unique and often settled privately. The Master further emphasized that bringing in information about other
employees' severance terms would lead to delays, sidetrack the litigation, and raise confidentiality
concerns.
As a result, the Master struck the impugned paragraphs from the claim and set aside WSIB’s default
noting, allowing them 30 days to file a defence. Armstrong’s request for full indemnity costs was not
granted outright; instead, the parties were encouraged to resolve costs amicably, failing which they could
return for a focused cost hearing. The decision reinforced that wrongful dismissal pleadings should
remain streamlined and relevant, avoiding unnecessary distractions and respecting the individualized
nature of employment law remedies.
Szczypiorkowski v. Coast Capital Savings Credit Union, 2011 BCSC 1376 (CanLII)
In Szczypiorkowski v. Coast Capital Savings Credit Union, the plaintiff, Mr. Henry Szczypiorkowski, a
62-year-old senior manager with over 18 years of service, brought a claim for wrongful dismissal after
being terminated without notice for sending an inappropriate email. Initially, Coast Capital claimed just
cause based on his breach of company policies regarding discriminatory communication. However, they
later withdrew this defence, issued a revised record of employment, and provided statutory notice. Mr.
Szczypiorkowski pursued damages for lost salary, bonuses, and benefits for a reasonable notice period,
arguing that his age, years of service, and limited job prospects justified a higher range of notice.
The court held that 18 months was a reasonable notice period, given Mr. Szczypiorkowski’s seniority, age,
and the difficulty he would face finding comparable work near retirement. The court included bonuses in
the damages, determining that they were a consistent and integral part of his compensation. The
defendant’s argument—that he might have been placed on a performance improvement plan and therefore
ineligible for bonuses—was deemed speculative and unsupported by concrete evidence. Additional
compensation included RRSP contributions, health insurance, and other benefits. The court rejected any
deductions for failure to mitigate damages, concluding that the plaintiff had taken reasonable steps to find
comparable employment.
The plaintiff also sought punitive damages, arguing that Coast Capital's conduct—initially alleging just
cause and denying him a reference—was outrageous. However, the court found that the employer acted in
good faith, reasonably believed it had cause based on policy violations, and performed a proper
investigation. The court emphasized that punitive damages are reserved for truly egregious conduct and
found no such behavior in this case. As a result, while Mr. Szczypiorkowski was awarded $205,350.08 in
damages (after deducting statutory notice already paid), his claim for punitive damages was dismissed.

Downham v. Lennox (County), 2005 CanLII 45197 (ON SC)
In the case of William Downham v. County of Lennox and Addington, the plaintiff, William Downham,
alleged that he was wrongfully dismissed from his managerial role in the County's social housing
department. His termination stemmed from his support of a convicted pedophile and parolee, Barry
Holmes, in applying for subsidized housing—an action that created significant concern among County
staff and community members. Although Mr. Downham did not attempt to influence the housing decision
unlawfully and did not prepare or submit the applications himself, senior County staff, heavily influenced
by inaccurate and inflammatory input from Mr. Holmes’ parole officer, concluded that Mr. Downham
acted in a conflict of interest and terminated him. The Court found that the County acted on
misinformation and failed to conduct a fair and thorough investigation.
Justice Ferguson determined that Mr. Downham’s conduct amounted to an isolated lapse in judgment
rather than any breach of trust, dishonesty, or abuse of authority. The court criticized the County’s senior
management, particularly Mr. Williams, for conducting a biased, flawed investigation, making defamatory
statements, and treating Mr. Downham unfairly throughout the dismissal process. The Court also found
that Mr. Williams’ letter of termination and subsequent communications caused Mr. Downham significant
emotional, reputational, and economic harm, including lasting damage to his career and mental health.
The County failed to follow its own employee conduct and disciplinary policies and made no efforts to
minimize the harm done.
As a result, the Court awarded Mr. Downham a total compensation package that included 15 months’
notice pay, additional damages for extended unemployment, aggravated damages, defamation damages,
and $100,000 in punitive damages. The Court emphasized that the County’s actions were vindictive,
malicious, and intended to ruin Mr. Downham’s career and reputation. Justice Ferguson held the County
liable not only for wrongful dismissal but also for intentional infliction of mental distress, stating that the
case was exceptional in its severity and impact on the plaintiff’s life.

Bravo v. Etobicoke Ironworks Ltd., 2005 CanLII 36256 (ON SC)
In Bravo v. Etobicoke Ironworks Limited, the plaintiff sued for wrongful dismissal after being terminated
from his job as a welder with over six years of service. He alleged he was dismissed without just cause
and on unfounded allegations of theft and insubordination. While he initially claimed $84,630 in
damages, including for 18 months' notice, overtime, and profit-sharing, the court awarded him $13,014.38
plus pre-judgment interest. The defendant argued the plaintiff should not receive costs due to failing to
proceed under the Simplified Procedure (Rule 76), as he recovered under $50,000. However, the court
found it was not unreasonable for the plaintiff to proceed under the ordinary procedure (Rule 77) given
the uncertainty around his entitlements and the range of notice periods that could apply.
Although the plaintiff did not properly plead Wallace damages (damages for bad faith in the manner of
dismissal), the court found that the claim's content and the defendant’s own preparation indicated
awareness of such an argument. The defendant’s argument that it had bettered its settlement offer also
failed, as the plaintiff was awarded costs, meaning the offer (which included costs) did not exceed the

judgment. The court concluded that the costs consequences under Rule 76.13(3) did not apply and that the
plaintiff was entitled to partial indemnity costs.
Ultimately, the court awarded the plaintiff $10,000 in legal fees plus GST and $1,235.89 in
disbursements. While the plaintiff had sought over $22,000 in costs, the judge reduced the amount due to
the modest recovery and the case's lack of complexity. The hourly rate claimed by plaintiff’s counsel was
also adjusted to reflect his years of experience and the nature of the case, resulting in a lower but fair cost
award.
Dupont v Ag Growth International Inc. (AGI-Westeel), 2021 ABPC 118 (CanLII)
In Dupont v. Ag Growth International Inc. (AGI-Westeel), the plaintiff, Mr. Tyler Dupont, brought a
wrongful dismissal claim after being terminated from his welding position at Westeel, where he had
worked for 9.5 years. Dupont claimed damages equivalent to 11 months’ wages, vacation pay, and
aggravated damages for the way his termination was handled. Westeel denied wrongdoing and alleged it
had just cause to dismiss Dupont due to a single incident of sexual harassment involving a coworker, RT.
Dupont admitted to lifting RT’s hoodie in a moment of flirtation but disputed the details and intent, while
RT and other witnesses testified that the action was unwanted and caused distress.
The court found that while Dupont’s action did meet the threshold for sexual harassment, it was an
isolated incident, and Westeel did not adequately consider alternative disciplinary measures before opting
for dismissal. Although Dupont violated clear company policies, the court determined that his termination
was not a proportionate response, especially given his long, clean work record and lack of supervisory
authority. The judge concluded that Westeel failed to prove just cause for summary dismissal and had
acted too hastily without properly weighing contextual factors and less severe disciplinary options.
Regarding damages, the court rejected claims for vacation pay and aggravated damages, finding that
Westeel had not acted in bad faith or with egregious conduct. However, Dupont was awarded general
damages for 10 months’ notice, totaling $46,102.10 after deducting $2,000 he earned post-dismissal.
Interest was also granted on this amount, and the court left open the issue of costs, allowing written
submissions. Overall, the judgment underscores the necessity for employers to conduct thorough, fair
assessments before resorting to termination for misconduct, especially in cases involving long-term
employees with otherwise clean records.
Daniel v. Survival Systems Ltd., 2000 NSSC 64 (CanLII)
In Daniel v. Survival Systems Limited, the plaintiff, Joseph Daniel, a chartered accountant, was
terminated from his position as controller after twenty months of employment. The defendant company
argued that Daniel was dismissed for just cause due to repeated lateness, despite clear instructions laid out
in a meeting and memorandum on August 11, 1998, requiring him to be at work by 8:00 a.m. Daniel
claimed he was wrongfully dismissed and was unaware of any attendance concerns prior to that date, as
his work hours were initially set by his supervisor, Stefan Gashus, and complied with department norms.
After the directive, Daniel attempted to comply, arriving within minutes of 8:00 a.m., though occasionally
late by up to nine minutes.

The court found that although Daniel did not perfectly meet the new punctuality requirements, his
lateness was not “wilful” insubordination. It was determined that the August 11 directive had indeed made
the company’s expectations clear, but Daniel showed an effort to comply and was never egregiously late.
Furthermore, the court did not believe the company president’s claim that Daniel had casually admitted to
being late “because he felt like it,” as this statement was not documented in the company’s memo at the
time. The court concluded that Daniel’s behavior did not constitute just cause for summary dismissal
without notice, particularly considering his improved efforts post-directive and the short period of time in
which the lateness occurred.
As a result, the court awarded Daniel nine weeks of salary and benefits in lieu of notice, as he found new
employment ten weeks after termination and had already received one week’s severance pay. The claim
for unpaid bonuses was dismissed, as there was insufficient evidence that the conditions for those bonuses
had been met. Additionally, the court declined to award “Wallace” damages for bad faith, finding that
while the termination may have been hasty and not objectively fair, it was not carried out with malice or
egregious conduct by the employer. Interest and costs were awarded to the plaintiff.
Pereira v. The Business Depot Ltd., 2009 BCSC 1178 (CanLII)
In Pereira v. The Business Depot Ltd., Paul Pereira brought a wrongful dismissal suit against Staples
Business Depot, alleging that his termination was unjustified. Pereira, a long-standing general manager at
the Nanaimo store, had taken multiple leaves due to serious mental health issues and drug addiction. After
completing a 28-day rehabilitation program in September 2004, he was in the process of reestablishing
himself and planning a return to work. Despite ongoing communication with Sun Life and Staples
regarding his recovery and intentions, Staples claimed Pereira had abandoned his job and terminated him
without notice on September 28, 2004. However, the Court found Pereira had not abandoned his position,
had clearly communicated his intent to return, and that Staples had acted unreasonably in concluding
otherwise.
Justice Voith determined that Pereira's termination was wrongful and that he was entitled to damages.
Given his age, seniority, managerial role, and health vulnerabilities, the Court awarded ten months’ salary
in lieu of notice. The judge noted Pereira had been attempting to resume work and that his mental health
and addiction struggles, known to Staples, heightened his vulnerability. Although Pereira relapsed after
learning of his dismissal, the Court found he did not fail to mitigate his losses, as his addiction rendered
job searching unfeasible during that period. Furthermore, there was insufficient evidence for the Court to
deduct from his damages the amount he received from a prior settlement with Sun Life, which included
long-term disability benefits.
The Court also dismissed Pereira’s claims for Wallace (bad faith) and punitive damages, concluding that
while some communications by Staples were inappropriate and unfair, they did not meet the threshold of
egregious or malicious conduct. Nonetheless, Pereira was granted entitlement to stock options during the
ten-month notice period plus an additional six months, with the value of those options to be determined
later. Ultimately, the Court ruled in Pereira’s favor and awarded him damages and legal costs.

Silva v. Leippi, 2010 BCSC 1205 (CanLII)
In Silva v. Leippi, the plaintiff Shawn Silva sued the defendants, Diane and Edmund Leippi and their
business Brentwood Salvage, for wrongful dismissal. The court dismissed Silva’s claims, siding with the
defendants. Following the dismissal, the defendants sought an award of costs, including double costs
under Rule 37B based on a pre-trial offer to settle for $15,000. Silva, however, argued that he should
receive his own costs or at least an apportionment, claiming success on discrete issues such as reasonable
notice and the right to compete in business. The court rejected Silva’s argument, emphasizing that his
partial successes did not outweigh the overall loss and that this was not a rare or exceptional case
warranting cost apportionment.
Justice Johnston found the general rule—that costs follow the event—should apply. While Silva may have
had limited success on a few issues, the defendants were ultimately successful as the claim was dismissed.
The judge referred to guiding precedent from the BC Court of Appeal, stressing that cost apportionment is
only appropriate in rare cases with clearly separable legal issues. Here, the case revolved around typical
wrongful dismissal matters, and the plaintiff’s failure to prove damages meant the defendants were the
clear winners. Therefore, the defendants were awarded their costs of the action.
Regarding the offer to settle, the court concluded that the defendants’ offer—delivered five days before
trial—was one that the plaintiff ought reasonably to have accepted. Although the offer came close to trial,
the issues were straightforward and the plaintiff was the main witness, so the timeline did not prejudice
him. However, the court limited the defendants’ entitlement to double costs to seven trial days, excluding
trial preparation and post-adjournment discovery, as cause was only introduced midway through the trial,
extending its length. The defendants were also awarded double costs for their costs application.
Strauss v. Albrico, 2007 BCSC 197 (CanLII)
In Strauss v. Albrico Services (1982) Ltd., the plaintiff David Strauss, a long-time employee and former
Area Supervisor, brought a claim for wrongful dismissal after being summarily terminated by Albrico for
allegedly stealing gasoline using a company gas card. Albrico claimed Strauss used the gas card without
authorization for personal use, constituting theft. Strauss denied any wrongdoing and argued that he had a
longstanding history of being allowed to use the gas card and company vehicle for both personal and
business purposes. The court found Albrico’s policies and instructions to be vague and undocumented,
and determined that Strauss’s use of the card was based on prior implicit permission and not proven
dishonesty. The judge concluded that the dismissal lacked just cause.
Given Strauss’s 16 years of service, age at the time of dismissal, and the nature of his work as a skilled
insulator and metaller, the court determined he was entitled to 16 months’ reasonable notice. However,
due to inconsistencies and lack of reliable documentation regarding his self-employment income after
dismissal, the court found that he had effectively mitigated his damages by earning an amount slightly
exceeding the damages he would have received. As a result, although the dismissal was found to be
wrongful, Strauss was not entitled to any monetary award for lost wages, as he had not suffered a
provable financial loss during the notice period.

Claims for aggravated, punitive, and Wallace damages were dismissed. The court held that Albrico’s
allegations of theft, although not sufficiently proven for summary dismissal, were based on an honest and
objectively justifiable belief. Furthermore, defamatory statements made to the Employment Insurance
Commission were protected by qualified privilege, and no independent actionable wrong was established.
While the court criticized Albrico’s lack of record-keeping and inadequate investigation, it ultimately
concluded that their conduct did not warrant additional damages beyond reasonable notice. Costs were
reserved for a future hearing.

Hampton Securities Limited v. Dean, 2018 ONSC 101 (CanLII)
In Hampton Securities Limited v. Dean, the Ontario Superior Court addressed a dispute between a
securities firm and its former employee, Christina Dean, a proprietary trader. Dean alleged she was
constructively dismissed after Hampton unilaterally attempted to alter her employment contract by
demanding an additional $50,000 be added to her reserve account within 24 hours. Hampton claimed
Dean was terminated for cause due to unauthorized trading and violation of trading policies. The Court
rejected Hampton’s assertions, finding that Dean was indeed constructively dismissed and that her trading
conduct was not unauthorized, nor had she breached any known policies. The employment contract was
interpreted in Dean’s favour, meaning she was only responsible for 60% of her trading losses, not 100%
as Hampton claimed. Accordingly, Hampton’s claim against Dean for $34,917 in losses was dismissed,
and it was found instead to owe her $2,730.12 from her reserve account.
The Court awarded Dean six months’ salary in lieu of notice, totaling $60,336.28, as her termination
clause was void for violating the Employment Standards Act by excluding continued benefit
contributions. Dean was also awarded $25,000 in general damages for defamation due to Hampton’s
filing of a false Notice of Termination (NOT) with the Investment Industry Regulatory Organization of
Canada (IIROC). The NOT falsely claimed she had been terminated for cause due to unauthorized trading
and failure to follow trading policies, damaging her ability to secure comparable employment. The Court
found these statements to be false, unsupported by documentation, and contradicted even by Hampton’s
CEO, who testified that the real reason for termination was Dean’s refusal to immediately increase her
reserve. The Court ordered Hampton to correct the NOT with IIROC and declared that Dean had resigned
due to the firm’s unilateral change of contract.
In addition to damages for wrongful dismissal and defamation, the Court awarded punitive damages of
$25,000. Justice Koehnen emphasized that Hampton’s conduct was egregious and marked a serious
departure from expected standards, especially given the imbalance of power in the employment
relationship. The false and harmful allegations made by Hampton had long-lasting effects on Dean’s
career and self-worth, and Hampton showed no remorse or corrective action for over eight years.
Although Dean also sought damages for mental distress (Wallace damages), those were denied due to a
lack of medical evidence. Ultimately, the Court found Dean to be a credible and reliable witness,
preferring her evidence over that of Hampton’s CEO, and held that Hampton’s treatment of her warranted
both compensatory and punitive damages.
Blondeau v. Holiday Ford Sales (1980) Ltd., 2005 CanLII 8672 (ON CA)

In Blondeau v. Holiday Ford Sales (1980) Ltd., the Court of Appeal for Ontario reviewed a claim for
constructive dismissal brought by Carol Blondeau, who had worked for the dealership for over 14 years as
a service advisor. After a period of stress leave due to family tragedies, Blondeau attempted to return to
her former position. Holiday Ford initially assured her that she would return to her previous role and pay.
However, upon her return, Blondeau was instead assigned menial tasks with no customer interaction, was
told her former position was unavailable unless someone resigned, and received unclear information
about her compensation. She was also treated coldly by staff, which compounded her distress. Blondeau
left the dealership after a week and alleged constructive dismissal.
The Court of Appeal found that Holiday Ford had unilaterally altered the essential terms of Blondeau’s
employment contract by failing to reinstate her to her prior role and pay as promised. The employer’s
brief letter promising a return to her service advisor role was not honored, and there was no credible
evidence of any genuine intent to do so in the immediate term. The trial judge's conclusion that Blondeau
didn’t want to return to work was not supported by the evidence. The appellate court ruled that the
employer’s failure to reinstate Blondeau as agreed constituted constructive dismissal under the principles
established in Farber v. Royal Trust Co..
Although Blondeau sought “Wallace damages” for the employer’s conduct, the Court held that there was
no evidence of bad faith or unfair dealing, as Holiday Ford did not act maliciously. Nevertheless, the
Court awarded Blondeau ten months' salary based on her annual income, as well as additional
compensation for vacation pay, salary for the week she worked, and course expenses, minus amounts she
owed the dealership. In total, Blondeau was awarded $28,726.92 plus interest and costs. The trial judge’s
ruling was set aside, and the Court also awarded her costs for both the trial and the appeal.
Whitford v. Agrium Inc., 2006 ABQB 726 (CanLII)
In the case of Blondeau v. Holiday Ford Sales (1980) Ltd., Carol Blondeau, a long-time employee of
Holiday Ford, took a stress leave from her position as a service advisor following several personal
tragedies. During her 141⁄2 years of employment, she had established herself as a capable and valued
employee. While she was on leave, Holiday Ford informed her that her position had been filled, but
assured her that a new service advisor role would be created for her upon her return. However, when she
came back to work, she was not given her previous role or responsibilities, was treated coldly by
colleagues, and was assigned routine tasks unrelated to her former job, all while receiving unclear
information about her compensation.
Blondeau, feeling blindsided and unsupported, sought legal advice and ultimately claimed she had been
constructively dismissed—meaning her employer had fundamentally changed the terms of her
employment without her consent. The Court of Appeal found that Holiday Ford failed to fulfill its
promise to reinstate her to her former position and pay, and had instead made substantial and unilateral
changes to her employment contract. Although the trial judge had found that Blondeau may not have truly
wanted to return to work, the appeal court disagreed, holding that the evidence showed her willingness to
return if her previous job was available. The employer’s vague and inconsistent communications, coupled
with the failure to deliver on written promises, were central to the court’s ruling in favor of Blondeau.

The Court concluded that Blondeau was constructively dismissed and awarded her ten months’ salary,
calculated on her full-year earnings rather than the judge’s original method, which favored the employer.
While the court declined to award additional "Wallace damages"—reserved for bad faith or unfair
dismissal—it acknowledged that Holiday Ford failed to properly support an employee returning from
stress leave. Blondeau received $28,726.92 in damages plus interest, as well as costs for both the trial and
the appeal, reversing the lower court’s decision and recognizing her mistreatment and loss of
employment.

Beard v. Suite Collections Canada Inc., 2006 CanLII 63560 (ON SC)
In Beard v. Suite Collections Canada Inc., Sean Beard, a Manager of Legal Collections, sued his former
employer for wrongful dismissal, alleging he had been terminated without just cause. Suite Collections
claimed otherwise, citing allegations that Beard made racist and sexist remarks, ignored business
opportunities, sexually harassed a subordinate (Ms. Kecskemeti), breached the Tenant Protection Act, and
neglected his managerial duties. Beard denied these accusations. The court considered testimony from
Beard, Ms. Kecskemeti, and Ms. Farah, as well as email evidence. Although there had been a consensual
sexual relationship and graphic email exchanges between Beard and Ms. Kecskemeti, the court found no
credible evidence of harassment or duress.
Justice Thorburn ultimately ruled that Beard had not been dismissed for just cause. While some of Beard's
conduct—such as using offensive language, ignoring at least one business opportunity, and sending
inappropriate emails—was found to be inappropriate and unprofessional, it was not serious enough to
justify termination without notice. The court emphasized the need for context and proportionality when
assessing employee misconduct and found that Suite failed to provide Beard with a clear warning or
opportunity to correct his behavior before dismissing him. The court also found that some of the
accusations, especially regarding sexual harassment and violations of the Tenant Protection Act, were
either unsubstantiated or based on unreliable testimony.
As a result, the court awarded Beard three months’ salary in lieu of notice, amounting to $13,525 after
deductions, but declined to award additional Wallace damages, finding no evidence of egregious or bad
faith conduct by Suite in the termination process. Beard was also awarded $10,000 in partial indemnity
costs as the successful party. The judgment reinforced that while inappropriate workplace behavior can
warrant discipline, termination for cause requires a higher threshold—especially without prior warnings
or consistent enforcement of company policies.

Lipton v. Hydroform Solutions, 2008 CanLII 30305 (ON SC)
In Lipton, Virginillo & Fox v. Hydroform Solutions, three former employees of the same company each
filed separate wrongful dismissal lawsuits. Although the details of their claims varied—Lipton and
Virginillo were probationary employees terminated shortly after hiring, while Fox was employed for over
a year and dismissed for cause—they all alleged wrongful dismissal and raised additional claims such as
mental distress, inducement, and punitive damages. Despite the differences in their employment terms

and specific allegations, they were all hired around the same time, worked for the same employer, and
were represented by the same legal counsel.
The plaintiffs brought a motion under Rule 6.01(1) of the Rules of Civil Procedure to have their cases
heard together or one after the other. The defense objected, arguing there was no significant commonality
in facts or legal issues to justify a joint hearing. However, Justice Gray ruled that, while there was limited
overlap in legal arguments or factual circumstances, the interests of judicial economy justified the motion.
The judge highlighted that having three separate trials would be inefficient and duplicative, especially
since the same legal teams were involved and the background corporate context was shared.
As a result, the court ordered that the three cases be heard concurrently or consecutively at the trial
judge's discretion. To streamline the process, the defendant was only required to attend one discovery,
produce a single affidavit of documents, and participate in one pre-trial conference. This decision
emphasized that while commonality is important, efficiency and the avoidance of multiplicity of
proceedings can independently justify such procedural consolidation under Rule 6.01(1)(c). The plaintiffs
were also awarded $1,500 in costs.

Kozar v. The Canadian National Railway Company, 2024 MBKB 12 (CanLII)
In the case of Kozar v. Canadian National Railway Company, Slav Kozar, a long-term employee with
over 30 years of unblemished service, brought a claim for wrongful dismissal after being terminated
without notice by CN in 2021. Kozar, 61 at the time, was in a management role and had not previously
been disciplined. His termination stemmed from a sexual harassment complaint involving two employees
under his supervision. Although he was not directly involved in the incident, CN accused him of failing to
properly respond. CN supported its actions with third-party investigative reports, but could not produce
any witnesses who were directly responsible for the termination decision or who could testify as to
whether those reports were even considered at the time.
Justice Rempel found that the lack of direct evidence from CN severely weakened its defense. The judge
emphasized that while CN had no procedural obligation to investigate or consult Kozar before dismissal,
its failure to present evidence from decision-makers or allow Kozar to respond to allegations was fatal to
its claim of just cause. The reports, deemed hearsay, held little weight, and CN's reliance on
them—without corroborating testimony or context—did not meet the legal threshold for termination
without notice under the McKinley framework. As a result, the court granted summary judgment in
Kozar’s favor, finding that CN had unjustly dismissed him.
In terms of damages, the court awarded Kozar 24 months’ pay in lieu of notice, totaling $202,197.12,
based on his average annual salary. CN’s arguments that he failed to mitigate his losses by accepting early
retirement or not seeking comparable employment were rejected, as the court deemed his actions
reasonable given his age, lack of formal education, and the loss of his spouse. The court did not award
aggravated (Wallace) damages, finding that while the dismissal was unjust, it was not malicious or unduly
insensitive. Thus, Kozar succeeded in his wrongful dismissal claim and received full compensation for
lost wages, plus interest.

Elgert v. Home Hardware Stores Limited, 2010 ABQB 71 (CanLII)
In Elgert v. Home Hardware Stores Limited, the plaintiff, Daniel Elgert, brought a wrongful dismissal
action against his employer, Home Hardware, and two individual employees, alleging he was dismissed
based on false accusations of sexual misconduct. Elgert, a long-term senior employee with over 16 years
of service, was suddenly terminated and publicly escorted off the premises, which caused significant
reputational and emotional harm—particularly as the events occurred in the small community of
Wetaskiwin. The defendants argued there was insufficient evidence for aggravated or punitive damages,
but the court determined there was enough to put those issues before a jury.
Justice Donald Lee provided guidance to the jury on the appropriate ranges of damages for various heads
of claim. For wrongful dismissal, the court set a notice period range of 12 to 24 months, reflecting Elgert's
senior role, tenure, age (over 50), and health, while considering that he may have had some opportunities
for re-employment. For aggravated damages relating to bad faith conduct in the manner of dismissal, the
judge set a range between $0 and $200,000. This range was informed by conflicting expert reports on
Elgert’s income loss and recognized the potential for compensation beyond typical notice due to the
alleged harm to his self-worth and reputation.
On punitive damages, the court set a broad range of $0 to $400,000, emphasizing the exceptional nature
of such damages and the serious consequences Elgert faced due to the employer’s harsh and potentially
high-handed conduct. For defamation claims against the individual defendants, who allegedly spread false
accusations of sexual assault, the judge set a global compensatory range of $5,000 to $60,000. The court
noted that although defamation damages tend to be modest, the nature of the allegations and their impact
in a tight-knit community warranted significant consideration.
Elgert v. Home Hardware Stores Limited, 2010 ABQB 62 (CanLII)
In Elgert v. Home Hardware Stores Limited, 2010 ABQB 62, the plaintiff, Daniel Elgert, brought a claim
for wrongful dismissal and defamation against his former employer, Home Hardware, and two individual
employees. The central issue was whether Elgert was terminated with just cause or whether he was
entitled to damages for wrongful dismissal, as well as aggravated, punitive, and defamation-related
damages. The trial was set before a jury, and the parties debated whether the judge should provide the jury
with a range of damages for these non-pecuniary claims. The plaintiff opposed giving any range, citing
Alberta law that typically precludes such guidance without agreement between counsel.
Justice Donald Lee reviewed the legal landscape across Canada, noting that Alberta’s prevailing rule,
from McGrath v. Pendergras, prohibits judges from providing juries with a range of non-pecuniary
damages unless there is mutual agreement. However, he acknowledged that other jurisdictions such as
Saskatchewan, Ontario, and British Columbia have moved toward allowing such judicial guidance to
promote fairness, consistency, and rationality in jury awards. The judge recognized a growing sentiment
among Canadian courts toward evolving this approach, referencing decisions that support offering a range
when appropriate to assist juries, especially in complex cases involving wrongful dismissal, defamation,
or punitive damages.

Ultimately, Justice Lee concluded that in this case, the jury would benefit from receiving a range of
damages for non-pecuniary claims, including general, aggravated, and punitive damages, due to the
complexity of the issues such as foreseeability, mitigation, and bad faith. He found that while Alberta
courts had not yet formally adopted this evolving trend, the interests of justice in this specific case
warranted providing the jury with a reasonable range of damages. With respect to the wrongful dismissal
aspect, the judge also confirmed that it would be appropriate to explain to the jury the factors involved in
determining reasonable notice, and to provide guidance or examples of typical notice periods to assist
their deliberations.

Fraser v. McKay, 2008 ONCA 823 (CanLII)
In Fraser v. McKay, 2008 ONCA 823, the Ontario Court of Appeal considered an appeal brought by the
plaintiff, Scott Fraser, against several defendants, including Andrew McKay, in relation to his dismissal
from employment. The central issues on appeal were Fraser’s claims for Wallace damages (now referred
to as damages for bad faith in dismissal), punitive damages, and a proposed amendment to his claim to
include negligent investigation.
The Court noted that Fraser had abandoned his claim for Wallace damages specifically against McKay.
Furthermore, the Court found that the facts as pleaded did not justify a claim for punitive damages against
McKay, as there was no indication of the type of egregious or malicious conduct that would warrant such
an award. The Court also rejected Fraser’s request for leave to amend his statement of claim to include a
cause of action for negligent investigation, stating that there was no factual basis provided to support the
idea that any negligent investigation was the reason for his dismissal.
As a result, the Court of Appeal dismissed the appeal in its entirety and awarded costs of $5,000 to the
respondents. This case reinforces the principle that claims for punitive damages and negligent
investigation must be supported by clear factual allegations, and that courts will not allow amendments to
pleadings without such a foundation
Smith v. Canada (Royal Canadian Legion), 2000 ABQB 339 (CanLII)

In Smith v. Royal Canadian Legion, No. 150, 2000 ABQB 339, the plaintiff, Robert Smith, sued his
former employer, the Royal Canadian Legion, for wrongful dismissal, seeking damages including
aggravated damages under Wallace v. United Grain Growers, as well as non-pecuniary damages for harm
to his reputation. Smith alleged that he took medical stress leave due to mistreatment by the Legion and
suffered humiliating treatment upon dismissal. The Legion responded by requesting further particulars of
these allegations, including specific dates, identities, and details of the conduct involved, to properly
defend the claim.
The Master originally ordered Smith to provide these particulars, which Smith appealed. Justice D. Lee
upheld most of the Master’s decision, agreeing that Smith’s pleadings lacked sufficient material facts
regarding the treatment that led to his stress leave and the alleged humiliating dismissal. Justice Lee
emphasized that while evidence is not required at the pleading stage, plaintiffs must still provide enough

factual detail to allow defendants to understand the nature of the claims and prepare a defence. The court
distinguished between providing evidence and articulating material facts necessary for a claim, and found
that Smith’s claim did not meet that threshold.
Ultimately, the court concluded that the Legion was entitled to details such as dates, names, and actions
involved in the alleged mistreatment and humiliation. Without such information, the defendant could not
respond meaningfully or investigate the claims. The court extended the deadline for the Legion’s
Statement of Defence until after these particulars were provided. While clarifying the Master’s decision,
Justice Lee declined to award costs due to the mixed outcome of the appeal, though he acknowledged the
defendant’s primary success.
Dillon v AMEC Foster Wheeler Americas Ltd., 2017 NSSC 211 (CanLII)
In Dillon v. AMEC Foster Wheeler Americas Ltd., 2017 NSSC 211, Sean Dillon brought a wrongful
dismissal action against his former employer, AMEC, following his termination in December 2015. He
claimed he had not been provided with appropriate notice or pay in lieu of notice and sought moral
(Wallace) damages. AMEC argued the dismissal was compliant with the employment contract and that
Dillon received notice in line with employment standards legislation. The dispute escalated into
cross-motions for disclosure: Dillon sought all emails between January 2015 and July 2016 containing his
name, while AMEC sought documents related to Dillon’s mitigation efforts, disability benefits, and
employment insurance file.
Justice Rosinski ruled that Dillon was entitled to receive all emails to and from him during the specified
period, acknowledging their potential relevance to the wrongful dismissal and possible moral damages,
especially given suggestions that AMEC may have known of his health issues. However, the judge denied
Dillon's request for emails merely about him, finding it overly broad. In contrast, AMEC's demands were
partially granted: Dillon was not ordered to reproduce emails he no longer had access to or details he had
already disclosed. However, the court required Dillon to provide a signed release allowing AMEC to
directly obtain his employment insurance file, emphasizing the need to balance disclosure with
proportionality and fairness.
Overall, the court maintained that while liberal disclosure is key to justice, it must be constrained by
relevance, proportionality, and privacy. Justice Rosinski highlighted that both parties must comply with
the disclosure rules, but also that discovery cannot become unnecessarily intrusive or burdensome. Each
party was granted part of their motion, but most other disclosure demands were dismissed, and if cost
disagreements arose, submissions were to be filed by specified dates.

Wright v. Feliz Enterprises Ltd., 2003 BCSC 267 (CanLII)
In Wright v. Feliz Enterprises Ltd., the plaintiffs, David and Linda Wright, brought a wrongful dismissal
claim against their former employer, Feliz Enterprises Ltd., after being terminated from their roles as
resident managers of an apartment complex. The central issue was not whether there was cause for
dismissal—none was alleged—but rather whether the three weeks’ pay in lieu of notice provided was

adequate. The plaintiffs argued they were entitled to a longer notice period, Wallace damages for bad faith
in the manner of dismissal, aggravated damages for emotional distress, and compensation for related
prescription medication. They also sought to include their previous employment with a related company,
Verbier, in their total length of service. The court found that although the Wrights were not entitled to full
credit for their prior work at Verbier, partial recognition was warranted due to the overlap in ownership
and management.
Justice Truscott ultimately ruled that the plaintiffs were entitled to a three-month notice period, taking into
account their short employment with Feliz, their relevant experience, and the partial credit for their time
at Verbier. However, the court rejected the claims for Wallace damages, aggravated damages, and special
damages. Justice Truscott found that the plaintiffs were not misled into taking the new position and were
actively seeking better employment opportunities at the time. There was no evidence of bad faith or
unfairness in the manner of dismissal that would justify extended notice or damages. The judge noted that
while the dismissal may have been upsetting, the law does not compensate for emotional distress arising
from the mere fact of termination.
The court also allowed the defendant’s counterclaim for unpaid rent. After the three-month notice period
expired, the plaintiffs remained in two suites at the Imperial Tower until March 31, 2002. The court
ordered them to pay $1,680 per month for the 51⁄2 months they stayed beyond the notice period—covering
both the residential suite and the second suite used for storage. The case concluded with direction that
parties could make further submissions on the issue of costs if desired.

Coupe v. Malone's Restaurant Ltd., 2006 BCSC 1350 (CanLII)
In Coupe v. Malone’s Restaurant Ltd., 2006 BCSC 1350, the plaintiff, John Coupe, sued for wrongful
dismissal after being terminated from his job at Malone’s Restaurant in Vancouver, which was then
operated by Eats Café Inc. Coupe had been employed continuously in various Malone’s locations since
1996, working his way up from busboy to shift manager. The downtown Malone’s location where he
ended up was transferred to Eats Café after the previous operating company encountered financial
difficulties. Coupe was dismissed in March 2003 by a manager who did not witness any of the alleged
misconduct firsthand. The stated reasons for dismissal included drinking on the job and failure to follow
company policies. However, the court found no direct evidence supporting these claims, and the supposed
“zero-tolerance” drinking policy was inconsistently applied, undermining its credibility as a ground for
dismissal.
Justice Myers determined that the dismissal was without cause, emphasizing that Coupe was not properly
warned nor given the opportunity to correct his conduct. Additionally, the employer’s reliance on hearsay
and vague management policies weakened their defense. The court accepted that Coupe’s employment
was effectively continuous from 1996, applying the “common employer” doctrine to the various Malone’s
locations previously managed by Trevor Magee. When Eats Café took over the downtown location, they
became successors and inherited employment obligations, as they made no attempt to treat Coupe as a
new hire. The judge rejected arguments that a receivership interrupted Coupe’s employment and noted
that the transition to the downtown location appeared seamless from Coupe’s perspective.

For damages, the court awarded Coupe six months’ notice, amounting to $17,250 in lost income, plus
vacation pay, less deductions for unemployment benefits and interim earnings, resulting in a final
judgment of $12,104. No Wallace (bad faith) damages were awarded, as the court found no evidence of
humiliation or malice in the dismissal process. Eats Café Inc. was found solely liable for the dismissal,
while the prior common employers were held jointly liable for the first five months of the notice period.
The action was dismissed against the individual defendants, as no grounds for personal liability were
established.

Pawlett v. Dominion Protection Services Ltd., 2007 ABQB 415 (CanLII)
In Pawlett v. Dominion Protection Services Ltd., 2007 ABQB 415, Marina Pawlett sued her former
employer, Dominion Protection Services Ltd., and her former supervisor, Ihsan Ismail, alleging sexual
harassment and assault during her employment. Pawlett claimed she was subjected to inappropriate
behavior including sexually explicit images on her work computer, unwanted physical contact, and a
serious sexual assault by Ismail on February 9, 2006. She sought damages for constructive dismissal, as
well as Wallace and punitive damages. She also brought a claim of sexual battery against Ismail
personally and argued that Dominion was vicariously liable for his actions, as he was acting within the
scope of his employment.
The case centered largely on credibility, with the judge finding Pawlett’s account clear, consistent, and
convincing, and rejecting Ismail’s denials. Despite attempts by the defense to discredit Pawlett through
minor inconsistencies and testimony from biased witnesses, the court upheld her claims. The court
concluded that Ismail's repeated and escalating behavior created a hostile and unsafe work environment,
which amounted to constructive dismissal. The court also held that the actions amounted to the tort of
sexual battery and that Dominion was vicariously liable due to its failure to protect Pawlett in a workplace
where Ismail had significant power and no oversight.
As a result, the court awarded Pawlett three months’ salary as compensation for the constructive
dismissal, which included one additional month as Wallace damages due to the psychological impact and
bad faith surrounding the termination. She was also awarded $50,000 in punitive damages for the
egregious nature of Ismail’s conduct, and $25,000 in general damages for the sexual battery. The total
damages amounted to $88,091.55, subject to deductions for any income she earned during the notice
period. The judgment held both defendants jointly and severally liable.
Canadian Council of the Blind v. Davis, 2007 CanLII 51159 (ON SC)
In Canadian Council of the Blind v. Sharon Davis, the plaintiff, a charitable organization, sued its former
employee, Sharon Davis, for misappropriation of funds. Davis claimed the money withdrawn from the
organization’s account was authorized and used to pay a legitimate contractor. In response, Davis filed a
counterclaim for wrongful dismissal and damages, including Wallace damages, and also included claims
against other parties for interference with contractual relations and indemnity. Justice McLean had
previously struck out most of Davis’s counterclaims for being improperly pleaded but allowed her an
opportunity to revise her statement.

When Davis submitted a new version of her counterclaim, the plaintiff again moved to strike parts of the
pleading. Master MacLeod agreed that the new statement contained improper anticipatory responses to
pleadings that had not yet been delivered, included pleading of evidence rather than material facts, and
raised irrelevant or overly detailed issues—especially those involving former parties like Ernie Tannis
who had already been removed from the litigation. While Master MacLeod acknowledged that some
points raised may be relevant, he emphasized that pleadings must remain focused, concise, and should
clearly outline the facts and legal issues in dispute.
Ultimately, Master MacLeod ordered that the challenged paragraphs be struck and gave Davis one final
opportunity to submit a properly revised pleading within 30 days. He also highlighted that unclear and
overly detailed pleadings complicate discovery, trial preparation, and raise legal costs. Though costs were
not immediately awarded, the parties were invited to agree on them or seek further direction. This
decision reiterates the importance of proper pleadings in civil litigation and reinforces the principle that
pleadings must articulate material facts—not evidence or narrative—to define the legal issues for trial.

Lelievre v. Commerce and Industry Insurance Company of Canada, 2007 BCSC 253
(CanLII)
In Lelievre v. Commerce and Industry Insurance Company of Canada, the plaintiff, Susan Lelievre,
claimed she was wrongfully dismissed from her role as a sales manager after receiving a performance
warning letter. The defendant, her employer AIG, maintained that Lelievre resigned after rejecting
performance concerns and sending emotionally charged emails announcing her departure. Although
Lelievre had expressed dissatisfaction and a desire for a severance package, she argued that her statements
were made in a state of emotional distress and did not amount to a formal resignation. The court had to
determine whether she was terminated or if she voluntarily resigned.
Madam Justice Boyd found that although Lelievre expressed an intent to leave, her actions and words
were not sufficiently clear and unequivocal to constitute a resignation under the law. The court held that
the employer, by retrieving company property and ending Lelievre's access to work, effectively
terminated her employment without proper deliberation or formal resignation from the plaintiff. Despite
Lelievre’s earlier expressions of frustration, her departure was not initiated through a proper resignation
process, and AIG’s actions amounted to wrongful dismissal.
In assessing damages, the court awarded Lelievre three months’ notice instead of the six initially
determined, as she had made little effort to mitigate her loss through job searching. The court rejected
Lelievre’s claim for Wallace damages, finding that the employer did not act in bad faith or with
insensitivity during the termination process. While there were miscommunications and procedural
missteps, AIG followed a progressive disciplinary approach, and there was no evidence that the manner of
dismissal harmed Lelievre’s future employment prospects.

National Bank Financial Ltd. v Potter, 2013 NSSC 350 (CanLII)

In National Bank Financial Ltd. v. Potter, 2013 NSSC 350, the Supreme Court of Nova Scotia considered
two issues arising from its previous decision: whether prejudgment interest should be awarded on punitive
damages, and whether such interest should be calculated on gross or net damages. National Bank
Financial Ltd. (NBFL) argued that prejudgment interest should not apply to punitive damages because
such damages are penal, not compensatory. However, Justice Warner rejected this view, noting that unlike
Saskatchewan or Ontario, Nova Scotia’s Judicature Act does not explicitly prohibit interest on punitive
damages. Nonetheless, he concluded that it would be inappropriate in this case to award prejudgment
interest on punitive damages because these damages only became payable after the court’s decision, and
awarding interest would result in an unfair inflation-based penalty.
Regarding the second issue, the dispute involved claims from Dunham, Weir, and Blackwood, who sought
compensation for the lost value of their shares in Knowledge House Inc. (KHI), which had been
mishandled by NBFL and its representative. The court had previously found NBFL liable for damages but
also held that certain margin debts owed by the claimants should be deducted from their compensation.
The question now was whether prejudgment interest should apply to the gross damage award or only the
net amount after those deductions. NBFL argued that only the net figure should bear interest, while the
claimants asserted that they were entitled to full prejudgment interest on the gross losses due to NBFL’s
misconduct.
Justice Warner clarified that the court’s intention was to prevent NBFL from profiting from its
wrongdoing, particularly in relation to interest charges on margin debts. He confirmed that the principal
portions of the margin debts were to be deducted from the damage awards, but NBFL would not be
entitled to any prejudgment interest on those debts. Conversely, the claimants—Dunham, Weir, and
Blackwood—were entitled to prejudgment interest on their net losses (i.e., share value minus the principal
debts). This ensured that NBFL was not unjustly enriched and the claimants were fairly compensated for
the loss of use of their funds.

Haftbaradaran v. Saturna Beach Estates (No. 2), 2017 BCHRT 271 (CanLII)
In Haftbaradaran v. Saturna Beach Estates (No. 2), 2017 BCHRT 271, the British Columbia Human
Rights Tribunal considered remedies following a finding that Saturna Beach Estates Ltd. discriminated
against Homan Haftbaradaran in employment on the basis of physical disability, contrary to section 13 of
the Human Rights Code. The Tribunal had previously ruled in Haftbaradaran v. Saturna Beach Estates,
2017 BCHRT 184, that the complaint was justified, but deferred the issue of remedy to allow further
submissions. Mr. Haftbaradaran sought both compensation for lost wages and an award for injury to
dignity, feelings, and self-respect, arguing that his specialized job, which he was passionate about, was
taken from him in a discriminatory and callous manner.
Saturna contested both claims, arguing that Haftbaradaran had received wage loss benefits from WorkSafe
BC and had not made efforts to seek employment. They also claimed there was no clear evidence of bad
faith or egregious conduct that would warrant a dignity award, referencing case law on moral damages
and arguing that any compensation should fall under the workers’ compensation regime. However, the
Tribunal rejected Saturna’s interpretation, affirming that injury to dignity under the Code is a statutory

remedy distinct from moral damages in common law, and that discrimination under the Code does not
require intent. The Tribunal found Saturna’s termination of Mr. Haftbaradaran via email, without regard
for his condition, to be especially callous.
After reviewing the evidence, the Tribunal concluded that Mr. Haftbaradaran had not met the evidentiary
burden to prove his entitlement to wage loss compensation, as he failed to show whether he could work or
had tried to find employment. Therefore, no wage loss was awarded. However, given the insensitive
manner of his termination and the significance of his job to him, the Tribunal found that the circumstances
justified an award for injury to dignity. While not as severe as previous cases involving longer-term
employment, the Tribunal awarded Mr. Haftbaradaran $15,000 in non-pecuniary damages, plus
post-judgment interest.
Salazar v. Murt Canada Inc., 2006 CanLII 9983 (ON SC)
In Salazar v. Murt Canada Inc. et al., 2006 ONSC, Deon Salazar sued her former employer for wrongful
dismissal and damages in lieu of reasonable notice after her employment as a part-time telemarketer was
terminated during a corporate sale. Ms. Salazar had been placed on temporary layoff in July 2004, with
the expectation of being recalled. However, while she remained on layoff, the assets of her employer were
sold to a new company, Telespectrum (Canada) Inc. (TCI). Employees were notified of the transaction on
October 27, 2004—after the deal closed—and were simultaneously terminated by the predecessor
corporation and rehired by TCI. Ms. Salazar, however, received no such letter and remained unaware of
the sale until December 2004. The central legal issue was whether she had become an employee of TCI
and was entitled to severance and notice pay.
Justice Harvison Young found that Ms. Salazar had, in fact, become an employee of TCI by operation of
conduct and intent. Although she was on layoff and not working at the time of the transaction, the court
concluded that the new employer intended to retain all employees, including those on leave, and that
Salazar’s continued communication with the company indicated her implicit acceptance of continued
employment. Her layoff period expired on October 25, 2004, at which point the court found her
employment had effectively ended due to a lack of available work. Despite not being formally rehired, the
court held that TCI was liable as her employer, and her employment was not constructively terminated by
the vendor alone.
As for damages, Ms. Salazar was awarded $6,600.72 under the Employment Standards Act (ESA) for
termination, severance, and vacation pay. In addition, the court determined she was entitled to eight
months’ notice under common law, valued at $12,350, but reduced this amount by the ESA compensation,
resulting in an additional $5,749.28 owed. Her total award amounted to $12,350, plus $322.35 in
prejudgment interest. The court declined to award “Wallace damages” for bad faith, finding no evidence
of unfair treatment in the manner of her dismissal. Judgment was granted in her favour accordingly.

Fisher v. Lakeland Mills Ltd., 2008 BCCA 42 (CanLII)

In Fisher v. Lakeland Mills Ltd., 2008 BCCA 42, Kathleen Fisher appealed a lower court decision that
awarded her 10 months' pay in lieu of notice following what was found to be a constructive dismissal. Ms.
Fisher, who began working at Lakeland Mills in 1985, was 66 years old at the time of her dismissal. After
a co-worker resigned, management sought to reorganize staff responsibilities, asking Ms. Fisher to take
on shipping duties requiring computer skills she was uncomfortable with. She was made to feel that if she
could not perform these tasks, the company would hire someone else and reduce her existing
responsibilities. Though Ms. Fisher did not wish to retire, she felt pressured to do so and eventually left.
The trial judge found that the employer’s failure to assure her of continued employment in her previous
role constituted constructive dismissal.
The Court of Appeal agreed with the trial judge’s conclusion, affirming that Ms. Fisher had been subject
to a unilateral and substantial change in her employment duties. Despite the company’s argument that the
trial judge used a subjective standard, the Court found there was sufficient objective evidence that the
changes were fundamental. The employer's silence in the face of Miss. Fisher's concerns effectively
affirmed that she was expected to adapt or leave, supporting the finding of constructive dismissal.
However, the Court rejected Miss. Fisher’s argument that the notice period should be extended due to her
age, assurances of continued employment, and alleged bad faith, concluding that the 10-month notice
period fell within a reasonable range based on the circumstances.
Additionally, the Court upheld the lower court's refusal to award additional “Wallace” damages for bad
faith in the manner of dismissal. While Ms. Fisher had been upset and felt unsupported, the judge
concluded that the situation arose more from miscommunication and poor planning than any egregious
conduct by the employer. As a result, both Miss. Fisher’s appeal and the employer’s cross-appeal were
dismissed, and the original judgment of 10 months’ notice plus minor benefits was left in place.

Olowolafe v. UPS, 2008 CanLII 69905 (ON LRB)
In the case Seun Olowolafe v. UPS and Director of Employment Standards, 2117-08-ES, the applicant,
Mr. Olowolafe, sought a hearing before the Ontario Labour Relations Board following what he claimed
was a wrongful dismissal by UPS. He alleged misconduct by the company's operations manager and bad
faith by a human resources representative, arguing that the circumstances warranted "Wallace" damages,
which are typically awarded for bad faith conduct in dismissal. Mr. Olowolafe also claimed his union
failed to pursue a grievance he had filed, asserting this violated his right to fair representation under
section 74 of the Employment Standards Act, 2000. He appealed to the Board to grant a hearing, seeking
punitive damages for financial, psychological, and physical harm.
The Board, however, clarified that it is a statutory body with jurisdiction strictly limited to what is granted
by the statutes that create it. It emphasized that the duty of fair representation is found under section 74 of
the Labour Relations Act, 1995, not the Employment Standards Act. Mr. Olowolafe’s application had
been made under the Employment Standards Act, and only named the employer—not the union—as a
respondent. Therefore, the Board lacked the jurisdiction to address his complaint about union
representation or to award punitive damages outside of the Employment Standards Act’s provisions.

Additionally, the Board noted that the employer, UPS, might fall under federal labour jurisdiction,
meaning that any complaint about union representation would have to be pursued through the Canada
Industrial Relations Board. As a result, and based on the findings from its earlier decision dated
November 26, 2008, the Board dismissed Mr. Olowolafe’s application in its entirety, stating it did not
have the legal authority to grant the relief he was seeking.

Bryson v. Print Key Inc., 2005 CanLII 22217 (ON SC)
In Bryson v. The Print Key Inc., 2005 ONSC, the plaintiff, Janice Bryson, brought a wrongful dismissal
action against her former employer after being placed on temporary layoff on February 18, 2004, and then
formally terminated three months later. Ms. Bryson had worked for the defendant for nearly 14 years as a
bindery operator and possessed a high level of skill, operating multiple machines in the bindery
department. While she was given 8 weeks' pay in lieu of notice under the Employment Standards Act
(ESA), she claimed that this was inadequate and sought 12 months' notice, citing her long service, age,
and job responsibilities. She also argued for additional damages under the Wallace framework, alleging
the employer misled her about the true nature of the layoff and delayed providing a reference letter.
Justice Lederman determined that a 10-month notice period was appropriate based on Ms. Bryson’s
specialized skill set, length of service, and the circumstances surrounding her dismissal. However, the
court rejected the claim for Wallace damages, finding insufficient evidence of bad faith. While Ms.
Bryson claimed the layoff was used deceptively to avoid financial obligations, the judge accepted that the
employer was facing genuine financial hardship and had used the ESA’s temporary layoff provisions in
accordance with standard business practices. The court found no evidence of intentional dishonesty or
insensitivity, nor any unreasonable delay in providing the reference letter.
Regarding mitigation, the court held that Ms. Bryson had acted reasonably in her job search after the
termination, applying broadly within her field and accepting a contract position. The defendant failed to
prove that suitable alternative employment was available or that she had unreasonably declined such
work. As a result, Ms. Bryson was awarded damages equivalent to 10 months’ notice (less the 8 weeks
already paid), plus benefits and pre-judgment interest. Costs were left to the parties to determine or
submit in writing within a specified period.
Pritchard v. The Stuffed Animal House Ltd., 2010 BCSC 213 (CanLII)
In Pritchard v. The Stuffed Animal House Ltd., 2010 BCSC 213, Audrey Pritchard sued her former
employer for wrongful dismissal after being terminated from her role as a sales representative following
17 years of service. Initially told that her termination was due to a downturn in business, the employer
later alleged cause for dismissal, claiming she had used company resources for personal gain and had
engaged in activities that competed with the company. These allegations included using the employer’s
expense account and shipping services to assist a friend’s retail store and participating in a potential
business venture with that friend. Justice Joyce found that while Pritchard had assisted her friend and used
company resources, she reimbursed the company, had not concealed her actions, and that her conduct did
not amount to a conflict of interest or competition justifying summary dismissal.

The Court concluded that Pritchard's involvement with her friend’s business, including a loan and helping
to sew clothing, did not breach any express or implied terms of her employment. The judge emphasized
that her friend’s business was a customer, not a competitor, and the employer’s arguments lacked
supporting evidence. Assertions about improper use of company computers and travel claims were
similarly dismissed as unsubstantiated or known to the employer prior to the termination, suggesting the
cause allegations were made only after the wrongful dismissal claim was filed. As such, the Court held
there was no just cause for dismissal and that the employer's post-termination conduct did not merit
additional "Wallace" damages for bad faith.
Justice Joyce awarded Ms. Pritchard 12 months’ salary in lieu of notice (deducting the 16 weeks she had
already received), amounting to $38,800, as well as $15,829.37 in compensation for unpaid vacation days,
totaling $54,629.37 plus interest. The Court found that Ms. Pritchard had made reasonable efforts to
mitigate her losses and rejected the employer’s claim that she had failed to do so. The judgment
emphasized the need for employers to act in good faith when terminating long-term employees and to
base cause allegations on substantial evidence, especially when such claims arise after a dismissal has
occurred.

Rodrigues v. Shendon Enterprises Ltd., 2010 BCSC 941 (CanLII)
In Rodrigues v. Shendon Enterprises Ltd., 2010 BCSC 941, Sharon Rodrigues, a long-term employee and
manager at a Dairy Queen in Castlegar, was summarily dismissed by her employer, Shendon Enterprises
Ltd., after 16 years of service. The dismissal followed the delivery of a "probation letter" alleging
rudeness, insubordination, and other misconduct, many of which were based on complaints from
coworkers. Rodrigues claimed wrongful dismissal, arguing she was never warned of performance issues
prior to the letter and was not given a fair opportunity to improve. The Court determined that Shendon
failed to provide adequate warning or a reasonable period for correction and had, by issuing the probation
letter, effectively condoned her prior conduct.
Justice Butler held that the conduct Rodrigues was accused of, though inappropriate at times, did not
amount to serious misconduct or a fundamental breach of her employment contract. Her management
style, while harsh, had been tolerated for years, and her actions were rooted in a desire to maintain
workplace standards. Moreover, the employer failed to engage in a constructive disciplinary process,
offering no support after placing Rodrigues on probation. The abrupt dismissal the day after delivering the
warning letter, without time for improvement, was deemed unreasonable. Thus, the Court ruled the
dismissal was without just cause.
Rodrigues was awarded 16 months’ pay in lieu of notice, totaling $25,725.50, which included six months’
worth of bonuses she had foregone in good faith. Although she sought punitive and Wallace damages, the
Court found no sufficient evidence of malicious conduct during her dismissal to justify them. However,
because Shendon had maintained serious and baseless allegations in its defense, Rodrigues was awarded
special costs for one day of trial and one day of preparation, in addition to double costs from March 16,
2010, onward.

Lewis v. Lehigh Northwest Cement Limited, 2009 BCCA 424 (CanLII)
In Lewis v. Lehigh Northwest Cement Limited, Robert Lewis, a long-term employee with 26 years of
service, was dismissed without cause after returning from a 28-month medical leave. Lehigh claimed no
suitable position was available for him and offered 15 months’ severance, which Lewis rejected. He filed
a wrongful dismissal claim and, in a summary trial, was awarded 22 months’ notice and approximately
$200,000 in damages. However, the trial judge only awarded him 65% of his costs, set off by 35% to
Lehigh, resulting in Lewis recovering just 30% of his legal expenses. On appeal, Lewis challenged the
cost apportionment and damages calculation, while Lehigh cross-appealed various findings, including
mitigation and salary assessment.
The British Columbia Court of Appeal upheld the trial judge’s decision regarding Lewis’s base salary of
$116,150, excluding a special $10,000 California-based allowance that had expired. The Court also
rejected Lewis’s claim for expected salary raises during the notice period, reasoning that discretionary
raises are not guaranteed, especially considering his extended medical leave. However, the Court found
error in the trial judge’s refusal to award damages for lost pension accrual. Lewis had opted to take a lump
sum pension payout upon termination, but he was still entitled to compensation for the additional 22
months of pensionable service he lost due to the premature dismissal. The Court calculated this loss at
$43,898 and ordered it be added to his damages.
The Court also upheld the trial judge’s finding that Lewis had taken reasonable steps to mitigate his loss
post-dismissal, given his age, health issues, and prolonged medical leave. It dismissed Lehigh’s argument
that Lewis delayed his job search and declined a valid job offer. Lastly, the Court ruled that the trial judge
erred in reducing Lewis’s costs, emphasizing that cost apportionment under Rule 57(15) should be rare
and reserved for exceptional cases. Since Lewis was successful on the central issues, he was entitled to
full costs of the action. The appeal was allowed, the damages increased by $43,898, the cost-sharing order
was overturned, and Lehigh’s cross-appeal was dismissed.
Boyd v. Wright Environmental Management Inc., 2008 ONCA 779 (CanLII)
In Boyd v. Wright Environmental Management Inc., Ed Boyd was awarded damages for wrongful
dismissal after being terminated without cause from WEMI, where he had worked since 1995. The trial
judge awarded him ten months’ notice and recognized his right to a 5% equity interest in the business,
based on a longstanding oral agreement dating back to the early 1990s when Boyd worked without salary
to support the development of the company. The court also found that the appellants acted oppressively
and unfairly toward Boyd by failing to formalize his equity interest and by terminating him just before a
meeting meant to resolve his share entitlement. As a result, Boyd was awarded $57,160.49 in damages,
plus additional awards for oppression, breach of fiduciary duty, exemplary damages, and substantial
indemnity costs.
On appeal, the Ontario Court of Appeal upheld most of the trial judge’s findings, including the wrongful
dismissal award and Boyd’s 5% interest in WEMI, affirming that the evidence overwhelmingly supported
his entitlement. However, the Court disagreed with the trial judge’s order granting Boyd a 5% interest in
120, a separate company that held patents, as there was no evidence that Boyd had been promised shares

in that entity. The Court also set aside the $30,000 in damages awarded for breach of fiduciary duty,
finding that the relationship between Boyd and the appellants did not rise to the level required for a
fiduciary obligation. Still, it upheld the $25,000 exemplary damages award, emphasizing the egregious
circumstances surrounding Boyd’s dismissal and the defendants' conduct.
Additionally, the Court addressed the appropriateness of the oppression remedy and reference to assess
the value of Boyd’s equity. It maintained the oppression remedy and affirmed the necessity of a reference
to determine the fair value of Boyd’s 5% stake in WEMI, while clarifying that this should exclude any
stake in 120. The Court also revised cost awards, granting costs to 120 for its successful appeal, partial
costs to the individual appellants, and ordering WEMI to pay partial indemnity costs to Boyd due to its
limited success. In sum, the appeal was allowed in part, modifying the scope of Boyd’s equity interest and
the associated remedies while preserving the key findings of wrongful treatment and entitlement.
Bent v. Atlantic Shopping Centres Ltd., 2011 NSSC 180 (CanLII)
In the case of Bent v. Atlantic Shopping Centres Ltd., Catherine Lynn Bent sued her former employer for
wrongful dismissal after being terminated from her role as a shopping mall manager. The trial court found
that while Bent was entitled to ten months’ notice, this had been sufficiently provided by the employer,
and therefore, she was not entitled to damages. Following this decision, the defendant, Atlantic Shopping
Centres Ltd., sought a costs award, arguing that it had fully succeeded in defending the claim and had
incurred over $88,000 in legal fees throughout the five-year litigation, including significant costs
stemming from Bent’s amended claims.
Bent contested the cost claim, arguing that the result of the trial was mixed, as she had succeeded in
proving that she was entitled to notice. She claimed this amounted to an implicit finding of wrongful
dismissal. She also alleged that Atlantic’s conduct—such as allegedly changing positions on liability and
complicating discovery—should disqualify or reduce the defendant’s cost entitlement. However, the court
firmly rejected this, finding that Atlantic never alleged just cause for dismissal and had consistently
maintained that it provided reasonable notice. Since Bent was unsuccessful in her claim for damages, the
court held that Atlantic was the fully successful party.
The court determined that under the 1989 Nova Scotia Tariffs of Costs and Fees, Atlantic was entitled to
$7,770.50 in party-and-party costs. However, recognizing that this amount did not represent a substantial
contribution to the legal fees actually incurred, the court exercised its discretion to award an additional
lump sum of $10,000, bringing the total to $17,770.50, plus $3,232.62 in disbursements. The court
rejected Bent’s arguments for cost reductions based on alleged changes in Atlantic’s legal position and
discovery issues, finding no compelling evidence of prejudice or misconduct. Thus, Atlantic was awarded
full costs as the successful party in the action.
Beck v Hillside Pines Home for Special Care Society, 2017 NSLB 45 (CanLII)
In the case of Beck v. Hillside Pines Home for Special Care Society, the Nova Scotia Labour Board
addressed the calculation of pay in lieu of nine months' notice after determining that the complainant,
Nida Beck, had been wrongfully dismissed without just cause. Although Hillside complied with the

Board’s original 2016 order to compensate Beck accordingly, disputes arose regarding the proper
calculation of the nine months’ compensation, particularly in relation to employment insurance
repayment, shift premiums, pension contributions, and other minor entitlements. Beck also raised
concerns about Hillside’s compliance with the order and insisted on certain conditions for the EI
repayment, which the Board rejected.
At a subsequent hearing in 2017, the Board clarified the method for calculating Beck’s entitlement. It
ruled that Hillside should have based the calculation on the actual work schedule Beck had at the time of
her termination—three day shifts and two evening shifts per week, with work every third weekend,
instead of Beck’s proposed assumption of consistent evening and weekend shifts. The Board also held
that Hillside must include both employee and employer pension contributions and a $60 Christmas bonus,
while deducting standard statutory deductions like CPP, EI, and taxes. However, it declined to enforce the
signing of a “Retirement Allowance Form” and rejected Beck’s additional claims for Wallace damages
and general damages, stating these were not part of the original ruling and were raised too late.
Ultimately, the Board acknowledged that Hillside had acted in good faith, despite miscalculations, and
that both parties had misunderstood how the compensation should be determined. The Board provided a
detailed framework for the recalculation to ensure Beck received what she would have earned had she
continued working during the notice period, thereby resolving the outstanding implementation issues from
the original wrongful dismissal decision.

Chang v. Northern Securities Inc., 2003 BCSC 1611 (CanLII)
In Chang v. Northern Securities Inc., the plaintiff, Robert Chang, sought damages for wrongful dismissal
after his employment was terminated without cause. Chang, a 42-year-old securities clearing clerk with
13.5 years of service (including his time with Georgia Pacific Securities, which was acquired by Northern
Securities), had been earning $60,000 annually. The defendant offered him only $15,000 in severance,
conditional on a full release, which he refused. Chang later received $10,000, equivalent to two months’
salary, but claimed a much longer notice period was warranted. He argued that he possessed specialized
skills, had difficulty finding similar work, and that the employer acted in bad faith by delaying statutory
payments and raising an unfounded defence of contract repudiation.
Justice Truscott applied the Bardal factors, noting Chang’s age, tenure, experience, and the state of the
securities industry. While he found that Chang was not near the end of the employment spectrum and did
not possess uniquely specialized skills as in the Gillies case, he concluded that a reasonable notice period
was 12 months. The judge rejected the employer’s claim that Chang had failed to mitigate his damages by
not staying in a lower-paying, high-stress job at Haywood Securities, and found that resigning from that
position was reasonable due to its negative impact on Chang’s health and personal life. A 15% reduction
in damages was applied to account for the possibility that Chang might find alternative employment
before the notice period ended.
The court also denied additional “Wallace” damages, finding no sufficient evidence of harm such as
humiliation or reputational damage from the manner of dismissal. In conclusion, Chang was awarded

$50,000 in damages (representing the remaining 10 months of salary after deducting the two months
already paid), less a 15% reduction for mitigation. The court awarded judgment in Chang’s favour and
ordered the defendant to pay costs.
Pate Estate v. Galway-Cavendish and Harvey (Township), 2013 ONCA 669 (CanLII)
In Pate Estate v. Galway-Cavendish and Harvey (Township), the Ontario Court of Appeal dealt with a
case involving wrongful dismissal and malicious prosecution. John Gordon Pate, after nearly a decade as
a municipal building inspector, was terminated without proper cause in 1999. Following his dismissal, the
township’s chief building official, acting under orders from a senior municipal officer, initiated a biased
internal investigation and provided selective information to the police. This led to criminal charges
against Pate, despite a lack of credible evidence. Pate was acquitted after a trial in 2002 and subsequently
sued the township for damages.
At trial, the court originally found that Pate had been wrongfully dismissed and awarded him 12 months’
wages in damages, along with Wallace damages, general and aggravated damages, special damages for
criminal defence costs, and a small amount of punitive damages ($25,000). However, the trial judge
initially dismissed the malicious prosecution claim. On appeal, the Ontario Court of Appeal found
significant legal errors in the trial judge’s approach to both the malicious prosecution and punitive
damages claims, and ordered new trials on both issues. On re-trial, the same judge found the township
liable for malicious prosecution and increased the punitive damages award to $550,000.
The township appealed again, particularly contesting the finding of malicious prosecution and the size of
the punitive damages award. The Court of Appeal upheld the finding of malicious prosecution,
emphasizing that the township knowingly withheld exculpatory information which directly led to the
charges being laid. However, the majority found that the trial judge did not adequately consider the
punitive elements already present in the compensatory and costs awards. As such, the court reduced the
punitive damages to $450,000, reasoning that the total compensation still needed to align with the
principles of retribution, deterrence, and denunciation.

Bent v. Atlantic Shopping Centres Ltd., 2007 NSSC 231 (CanLII)
In Bent v. Atlantic Shopping Centres Ltd., Catherine Bent, a mall manager with nearly nine years of
service, sued her employer for wrongful dismissal after being terminated on July 30, 1999. While on
medical leave following a personal tragedy, Bent was informed in September 1998 that her position
would be eliminated due to mall renovations. She was offered a transfer to Fredericton, New Brunswick,
which she declined for personal reasons. Atlantic claimed this offer, combined with subsequent
communication, constituted adequate notice of termination. Bent argued she was not clearly informed her
job would end if she refused the transfer and believed other employment within the company was
possible.
The court focused on when clear and unequivocal notice of termination had been provided. Applying an
objective test, Chief Justice Kennedy concluded that the combined communications from September

24–25, 1998, constituted valid and sufficient notice. Evidence, particularly from Atlantic’s HR
representative Mr. McGrath, showed that Bent understood her employment would end if she declined the
Fredericton transfer, and that she even discussed aligning her termination with her husband’s graduation.
The court found this amounted to ten months’ notice, ending July 30, 1999, which was both reasonable
and sufficient under the circumstances, taking into account Bent’s role, experience, and ability to seek
similar employment.
Bent also sought additional damages under Wallace v. United Grain Growers, arguing that Atlantic acted
in bad faith by making her decision while on medical leave and by denying short-term disability after she
stopped working. However, the court found no evidence of unfair treatment or bad faith. Bent had
declined to work despite being physically able, and Atlantic’s actions, including its handling of her
benefits and termination, followed company policy. Ultimately, the court dismissed the claim for
wrongful dismissal damages, finding the employer had provided appropriate notice and had not acted in a
manner warranting additional compensation.

Southworks Outlet Mall Inc. v. Bradley, 2009 CanLII 37698 (ON SC)
In Southworks Outlet Mall Inc. v. Susan Bradley et al, the Ontario Superior Court of Justice ruled on two
interconnected actions and their counterclaims. The first action involved a $27,000 loan given by
Southworks to Susan Bradley, of which she admitted was outstanding. Judge Flynn found in favour of
Southworks, awarding judgment for the full loan amount with applicable interest. The second action
involved claims against Susan, her husband Michael, and their company, Jack Rabbits, for breaching a
lease agreement with Southworks by defaulting on rent and fraudulently removing inventory to avoid
landlord distraint rights. The court found that Jack Rabbits had indeed defaulted and that Susan and
Michael removed inventory with intent to defeat Southworks’ claims, awarding damages including double
the value of the inventory under the Commercial Tenancies Act.
Susan Bradley filed counterclaims in both actions, alleging wrongful dismissal, breach of contract, and
sexual harassment against Southworks, John Wright (its principal), and Endlines Inc. However, the court
dismissed all counterclaims. It found Susan was an independent contractor for Endlines, not an employee,
and therefore had no valid wrongful dismissal claim. Her breach of contract claim, based on failed
business negotiations with John Wright, was dismissed for lack of a definitive agreement or resulting
damages. Her claim of sexual harassment was also dismissed; the court found her testimony lacked
credibility and indicated the claims were likely fabricated to deter Southworks from pursuing legal action
over the loan and lease defaults.
Ultimately, the court ruled entirely in favour of Southworks. It granted judgments totaling over $48,000
against Susan and Jack Rabbits for arrears, accelerated, and unpaid rent, and added $20,476 in penalties
against Susan and Michael jointly for the fraudulent inventory removal. The court pierced the corporate
veil to hold Susan personally liable for Jack Rabbits’ debts but declined to extend the same liability to
Michael beyond the penalty already assessed. The court also directed the parties to submit cost outlines
for the awarding of legal costs, stating Southworks was entitled to its costs due to its complete success in
both actions.

Rodrigues v. Powell, 2007 CanLII 29343 (ON SC)
In this Ontario Superior Court of Justice decision, plaintiffs Cesar Rodrigues and Nikola Menalo, former
union officials, sued the Central Ontario Regional Council of Carpenters, Drywall and Allied Workers
(CORC) for wrongful dismissal. Rodrigues claimed his termination on April 11, 2003, was politically
motivated and malicious, while Menalo asserted he was wrongfully dismissed on the same day. CORC,
however, defended Rodrigues’ dismissal on the grounds of after-acquired cause, citing his secret efforts to
create a new drywall council to rival CORC and alleged involvement in criminal acts against
non-unionized worksites. Menalo’s employment ended following Rodrigues’ termination, when he left a
meeting in protest and later submitted a letter referencing stress, without returning to work.
The Court found that Rodrigues breached his fiduciary duty to CORC by covertly promoting the
secession of Local 675 to establish a new drywall council, all while remaining on CORC’s payroll.
Additionally, credible evidence supported Rodrigues’ involvement in acts of vandalism and sabotage
against non-union job sites, which the Court found incompatible with his senior role and trust-based
relationship with the employer. These actions constituted just cause for dismissal. In contrast, the Court
ruled that Menalo voluntarily resigned based on his conduct—leaving his employer-issued items behind,
failing to return to work, and never clarifying his intentions. His resignation was found to be unequivocal.
Although alternative notice periods of five months for Rodrigues and two months for Menalo were
calculated for reference, both claims were dismissed in full, and neither plaintiff was awarded any
damages. The Court also rejected their claims for aggravated or “Wallace” damages. Costs of $60,000
were awarded jointly and severally against Rodrigues and Menalo for what the Court deemed a
contentious and serious litigation that failed to prove its central claims. The case underscores the
importance of loyalty, transparency, and accountability in fiduciary employment roles, especially within
organizations driven by collective representation.

Pate v. Galway-Cavendish and Harvey (Township), 2009 CanLII 70502 (ON )
In the case of Pate v. Township of Galway-Cavendish and Harvey, the plaintiff, John Gordon Pate, a
former municipal building inspector, sued the Township after being wrongfully dismissed and
subsequently charged with theft and fraud regarding missing building permit fees. Although Pate and the
Township settled the wrongful dismissal claim with 12 months’ pay, he continued with claims for
aggravated and punitive damages, as well as special damages for legal costs incurred in defending the
criminal charges. The court found that Pate was dismissed without proper notice or explanation, and later
faced criminal charges based on incomplete and misleading information provided by the Township’s
Chief Building Official, John Beaven. Key exculpatory evidence, including a 1995 prior investigation and
the loss of municipal files, was not disclosed to police, leading to a lengthy criminal process in which Pate
was ultimately acquitted.
Justice Gunsolus held that although the plaintiff did not establish malicious prosecution—since the police
ultimately decided to lay the charges independently—he was entitled to significant aggravated and
punitive damages. The court found that the Township acted in bad faith by firing Pate without cause,

denying him the opportunity to respond to allegations, failing to withdraw unfounded accusations, and
continuing to rely on baseless claims through trial. Beaven’s own admission that he was instructed to offer
Pate clemency in exchange for his resignation further highlighted the Municipality’s improper conduct.
Additionally, the court found the Township's failure to disclose lost files and prior investigations to the
police to be egregious, though not rising to the level of intentional obstruction of justice.
As a result, the court awarded Pate $7,500 in special damages for legal costs, $75,000 in general and
aggravated damages for the emotional, financial, and reputational harm caused, $25,000 in punitive
damages to denounce the Township's highhanded conduct, and four months' salary as a Wallace bump for
bad faith in the manner of dismissal. The court acknowledged that the Township’s actions led to severe
personal consequences for Pate, including the loss of his marriage, his business, and his municipal career.
While acknowledging the case did not meet the threshold for malicious prosecution, the decision strongly
condemned the Municipality’s conduct and emphasized the need for accountability and fairness in
employment termination.

Pires v. Vectis Technologies, 2007 BCSC 1144 (CanLII)
In Pires v. Vectis Technologies Inc., the plaintiff, Dave Pires, brought a wrongful dismissal action against
his former employer, Vectis Technologies, after being terminated without cause in June 2006, allegedly
due to lack of funds. Pires initiated his claim under Rule 66 of the British Columbia Rules of Court,
anticipating a straightforward case based on a clear written employment contract. However, after Pires
filed suit, Vectis altered its position and asserted a just cause defence, claiming Pires had a conflict of
interest that breached the employment agreement. This shift led to delays and complications in what was
initially expected to be a relatively simple matter.
As part of the litigation, Pires applied to amend his pleadings to include a claim for Wallace damages for
bad faith dismissal, which was allowed on reasonable conditions. He also sought to add Doug Manness,
the sole director and CEO of Vectis, as a defendant, alleging that Manness personally induced the
company to breach its contract with him out of personal animosity. However, the court rejected this
proposed amendment, citing the Said v. Butt rule, which protects corporate directors acting within their
scope of authority. Since Pires failed to plead sufficient particulars of malice or conduct outside
Manness’s official role, the court ruled that the claim disclosed no reasonable cause of action.
Pires was, however, permitted to amend his claim to include allegations of abuse of process, based on
Vectis’s shift in legal strategy and use of affidavits to delay the proceedings and undermine his application
for summary judgment. The court found that while these allegations might not ultimately succeed, they
were not "absolutely beyond doubt" and therefore could proceed against both Vectis and Manness.
Manness was added as a defendant specifically for the abuse of process claim, and the court ordered that
this portion of the lawsuit be stayed until the wrongful dismissal matter was resolved. No costs were
awarded regarding the plaintiff's application.

Beard v. Suite Collections Canada Inc., 2008 CanLII 35671 (ON SCDC)

In Sean Beard v. Suite Collections Canada Inc., the plaintiff, Sean Beard, was employed as Manager of
Legal Collections when he was terminated on February 7, 2005. Beard claimed wrongful dismissal,
whereas the defendant employer argued he was terminated for just cause. At trial, the judge determined
that while some allegations of misconduct—such as inappropriate remarks and a missed business
opportunity—were supported, they did not rise to the level of just cause for dismissal. The judge
emphasized that Beard had been considered a diligent employee overall and that the company had not
enforced its own policies or provided a proper warning before dismissal.
Applying the principles from McKinley v. B.C. Tel, the trial judge emphasized the need for a balanced
and contextual approach to employee misconduct. Although Beard’s behaviour was found to be
inappropriate—especially given his supervisory role—it was concluded that he should have been given a
clear warning rather than being summarily dismissed. As a result, the court awarded Beard $13,525 in
damages for three months’ notice, net of mitigation earnings, and $10,000 in costs. The request for
Wallace damages was denied.
On appeal, the Divisional Court found no palpable or overriding errors in the trial judge’s findings or
legal application. The appellate judges held that the trial judge’s decision was thoughtful and
well-supported by the evidence. They rejected the employer’s attempt to essentially retry the case and
dismissed the appeal with $6,000 in costs awarded to Beard.

Kenroy Eubanks v Metro Ontario Inc., 2020 CanLII 49237 (ON LRB)
In the case Kenroy Eubanks v. Metro Ontario Inc. before the Ontario Labour Relations Board, the
applicant filed two applications—one for interim relief and the other alleging unfair labour practices
under section 72 of the Labour Relations Act, 1995. Section 72 protects employees from discrimination
by employers due to union involvement or the exercise of rights under the Act. However, the applications
were filed improperly in hardcopy despite the Board’s clear instructions during the COVID-19 pandemic
that all submissions must be electronic. Furthermore, the applicant failed to provide proof that the
applications had been delivered to the responding party, as required.
Due to these procedural shortcomings, the Board terminated both applications without prejudice, meaning
the applicant is permitted to refile them correctly. The Vice-Chair, however, made a substantive
observation that the claims, even if accepted as true, did not clearly demonstrate a violation of section 72.
The application did not include specific pleadings relating to union rights or employer retaliation for
union activity, which is the essence of section 72. Instead, the application focused on claims more
commonly addressed through employment or human rights litigation, such as discrimination based on
disability, wrongful dismissal, emotional distress, and breach of contract.
The Board emphasized that while it was not dismissing the legitimacy of Mr. Eubanks’ concerns
regarding his termination, the nature of his complaints and the remedies he sought—such as Wallace
damages—did not align with the Board’s jurisdiction in unfair labour practice matters. The decision
encouraged the applicant and his counsel to consider whether a different legal forum would be more
appropriate to address these issues, especially if seeking remedies typically granted in civil or human
rights proceedings rather than under labour relations law.

Koos v. A & A Customs Brokers Ltd., 2009 BCSC 563 (CanLII)
In Koos v. A & A Customs Brokers Ltd., the plaintiff, Jennifer Koos, claimed she was wrongfully
dismissed by her employer after a workplace incident on December 14, 2007. Koos had taken an extended
break to run a personal errand, which led to a heated exchange with her manager who publicly accused
her of lying. Upset, Koos reported the matter to a superior and attended a meeting she later found
unsatisfactory. The following day, after an emotional breakdown at work, she was encouraged to go
home. She sought medical help and obtained a doctor's note recommending a two-week leave for anxiety,
which she believed was sent to the employer. Despite this, she did not directly contact the company, and
her employer, assuming she had abandoned her position, sent her a termination letter on December 31.
Justice Rice found that the plaintiff’s behavior did not amount to an unequivocal resignation or
abandonment of her job. Though Koos did not return calls or follow up directly, her previous medical
leave history and belief that her doctor’s note had been received provided reasonable grounds to infer she
had not intended to quit. The court found that the employer acted prematurely in treating the absence as a
resignation without taking sufficient steps to clarify Koos’ intentions. Consequently, the court ruled her
termination constituted wrongful dismissal, entitling her to damages.
In assessing damages, the court awarded Koos 10 months' salary in lieu of notice based on factors such as
her 10-year tenure, age (40), salary (~$50,000), and the specialized but non-managerial nature of her job.
While the defendant argued for a shorter notice period, the judge found 10 months appropriate and
determined Koos had not failed in her duty to mitigate damages. The claim for Wallace damages due to
alleged bad faith in dismissal was denied, as the court found no evidence of untruthful or unduly
insensitive conduct by the employer. Koos was awarded costs at Scale B.

Kidder v. Photon Control Inc., 2011 BCSC 1016 (CanLII)
In Kidder v. Photon Control Inc., 2011 BCSC 1016, the Supreme Court of British Columbia considered
two related legal actions: one for wrongful dismissal initiated by John Kidder, and another by Photon
Control Inc. seeking to rescind a loan agreement with Kidder. Kidder, a co-founder, CEO, and director of
the company (formerly known as Coldswitch), was terminated after not being re-elected to the board in
2001. He claimed wrongful dismissal and sought 18 months' salary. Photon argued the employment was
frustrated by his non-election or justified by various allegations of misconduct, including
misrepresentations about his financial situation and actions surrounding a company loan. The court found
that Kidder’s role as CEO was not contingent on board membership and that his employment had not
been frustrated by law.
The court carefully examined Photon’s allegations of just cause for dismissal, including Kidder’s alleged
failure to disclose a loan subordination agreement, misleading statements to a potential partner,
mismanagement of product trials, and self-serving conduct in salary negotiations. However, the court
found that none of these grounds amounted to just cause for dismissal, either individually or collectively.
The judge determined that strategic disagreements between Kidder and other board members, especially
the new chairman, were the real motivation for his termination. Since Kidder’s dismissal was not legally

justified, he was awarded damages equivalent to 18 months’ salary, and no Wallace (aggravated) damages
were warranted as the manner of dismissal was not unduly insensitive or in bad faith.
Regarding the rescission of the loan agreement, Photon alleged that Kidder misled the board during
negotiations, breaching fiduciary duties. The court disagreed, ruling that while Kidder did owe fiduciary
duties as a director and CEO, during the loan negotiations he was primarily acting in his capacity as a
creditor. Both parties mistakenly believed the loan was payable on May 1, 2001, rather than October 7,
2001, but this common mistake was not fundamental enough to invalidate the agreement. The court
upheld the validity of the loan agreement, emphasizing that Photon was legally advised and had sufficient
opportunity to assess the terms. Consequently, Photon’s claim for rescission was dismissed, and the court
ordered payment of the outstanding loan balance to Kidder.

Rutkowski v. Edmonton Transit Mix & Supply Co. Ltd., 2007 ABQB 277 (CanLII)
In Rutkowski v. Edmonton Transit Mix & Supply Co. Ltd., the plaintiff, Waldemar Rutkowski, was
dismissed without notice from his position as operations superintendent after 21 years of service. The
employer claimed just cause, citing repeated tardiness and misconduct in 1999 and 2000. The plaintiff,
however, argued that he had consistently received strong performance reviews, had only one formal
written warning for lateness, and was never told his job was in jeopardy. The court reviewed multiple
performance evaluations, incidents of lateness, and memos, including those in May and August 1999 and
April and June 2000. Though some concerns were raised, the plaintiff maintained high performance
ratings and received full annual bonuses, suggesting ongoing employer satisfaction.
Justice Moreau concluded that while there were isolated incidents of lateness—specifically on June 1 and
June 7, 2000—these did not amount to serious misconduct justifying dismissal without notice. The court
emphasized that the plaintiff had not received adequate warnings nor been given a reasonable opportunity
to correct any alleged issues before being terminated. The memos issued were inconsistent in tone and
seriousness, and some allegations, such as rumours about leaving the worksite or being under the
influence, lacked credible supporting evidence. The employer’s actions, including misrepresenting the
suspension as pending investigation while already having decided to terminate, further weakened their
claim of just cause.
As a result, the court ruled in favour of Rutkowski, awarding him 16 months’ salary and benefits in lieu of
reasonable notice, amounting to $109,348.64, minus income earned during that period. Claims for
Wallace damages and reimbursement of RRSP withdrawals were denied due to insufficient evidence and
lack of proper pleading. The court acknowledged Rutkowski’s difficulty finding comparable employment
post-termination and found that he had made reasonable efforts to mitigate his losses.

Gallagher v. John Bear Pontiac Buick Cadillac Ltd., 2006 CanLII 1190 (ON SC)

In Gallagher v. John Bear Pontiac Buick Cadillac Ltd., Bradley Shawn Gallagher, a long-term
commission-based used car salesman, brought a wrongful dismissal claim against his employer. Gallagher
asserted that he was effectively terminated in January 2003 after refusing to sign the company’s annual

commission agreement, which he believed misrepresented how his commissions were being calculated.
He alleged constructive dismissal based on this refusal and the employer’s ultimatum that he sign the
agreement or face termination. He also sought damages for wrongful dismissal, mental distress, punitive
damages, and an accounting of unpaid commissions. The defendant maintained that Gallagher had
voluntarily resigned and was not owed any damages or further compensation.
The Court found that Gallagher had not resigned, but was effectively dismissed when he refused to sign
the 2003 commission plan without receiving clarification about his pay concerns. The judge ruled that
Gallagher had a long-standing, fluid employment relationship governed by implied contractual terms, and
his refusal to sign the commission plan did not constitute cause for dismissal. Although employers have
the right to change compensation plans or require agreements as a condition of continued employment,
they must provide reasonable notice of termination if the employee refuses such terms. Gallagher was
awarded $32,500 in damages for wrongful dismissal, representing five months’ pay in lieu of notice after
adjusting for his mitigation efforts.
The Court also ordered an accounting to determine whether Gallagher had been underpaid commissions
in previous years due to vague and inconsistently applied definitions of “dealer cost.” The employer’s
failure to clearly define “dealer cost” and the use of outdated and confusing recap sheets contributed to
the accounting issue. However, the Court declined to award Wallace damages, punitive damages, or
damages for mental distress, finding no evidence of bad faith or egregious conduct by the employer. The
judge urged both parties to agree on the accounting outcome to avoid further trial expenses and delays.

Therrien v. True North Properties Ltd., 2007 ABQB 312 (CanLII)
In Therrien v. True North Properties Ltd., Hector Therrien, a seasoned chartered accountant, was induced
by Gaetan Gagnon to leave his established accounting partnership and work exclusively for Gagnon’s
corporate group, the Gagnon Companies. They agreed to a salary of $12,000 per month and a full-time
commitment, with Therrien using his Professional Corporation to invoice for services. Both parties
initially viewed this as a long-term relationship that would last until Therrien's retirement. However, by
December 2000, after a series of layoffs due to financial struggles within the Gagnon Companies, Gagnon
informed Therrien his full-time employment would end by May 2001, and that he would only be retained
on an "as needed" basis. Therrien viewed this as a constructive dismissal and left the company after
delivering a letter asserting his rights.
Justice Sulyma found that Therrien was in fact an employee, not an independent contractor, applying
multiple legal tests to assess the true nature of the relationship. The Court determined that Gagnon
exercised significant control over Therrien’s work, and that Therrien relied solely on this employment for
income, did not work elsewhere, and had no power to delegate, hire, or fire. The use of a Professional
Corporation for tax purposes did not alter the employment relationship. The Court rejected the
defendants’ claim that Therrien had repudiated the contract or voluntarily resigned. Gagnon’s
announcement of future reduced hours and pay, and the lack of clear continued employment terms,
constituted constructive dismissal, warranting compensation.

Therrien was awarded damages equivalent to 12 months’ notice based on the circumstances of his
termination, including his age, the inducement to leave secure employment, and the difficulty he would
face finding comparable work. Wallace damages were not awarded as the Court did not find Gagnon’s
conduct rose to the level of bad faith, though his handling of the dismissal was found lacking in fairness.
Therrien was found to have acted reasonably in his mitigation efforts, and the defendants’ counterclaim
against him was dismissed entirely. The final damage amount was subject to deductions for income
earned during the notice period through his Professional Corporation.

Lane v. Board of School Trustees of School District 68 (Nanaimo- Ladysmith), 2006 BCSC
129 (CanLII)
Carola Lane, the former Superintendent of School District 68 (Nanaimo–Ladysmith), brought a
defamation lawsuit against members of the Board of School Trustees and the Board itself following her
termination in February 2003. Lane’s employment was terminated amid controversy over a directive she
issued suggesting schools should rename “Christmas concerts” to more inclusive terminology in line with
the School Act’s secular mandate. The directive triggered significant backlash from the public, media, and
some Trustees. Statements made by Trustees in public and to the media suggested that Lane had acted
unilaterally, exceeded her authority, and contributed to issues such as low staff morale and instability in
the district. Lane claimed these statements were defamatory and that they severely damaged her
professional reputation and emotional well-being.
The trial focused on whether the statements made by the Trustees—including letters to newspapers,
public comments at Board meetings, and interviews—were defamatory and, if so, whether they were
protected by qualified privilege or constituted fair comment. Justice Tysoe found that most of the
statements did not meet the legal threshold for defamation because they did not impute a detrimental
quality to Lane or were not reasonably interpreted by the public as damaging her reputation. However,
one official Board statement was found to be defamatory because it implied that Lane’s leadership had
resulted in poor morale and instability, thereby undermining her professional competence. The Court also
examined whether the defamatory statement was made with malice, and whether the defence of qualified
privilege applied.
In conclusion, the Court ruled in Lane’s favour regarding the single defamatory Board statement but not
the others. It determined that Lane was entitled to damages based on the impact of that particular
statement. The Court also acknowledged the emotional distress Lane experienced, including panic attacks
and difficulty finding comparable employment post-termination. However, the Court rejected her broader
claims for aggravated and punitive damages, as well as her demand for damages equivalent to those
awarded in Hill v. Church of Scientology. Ultimately, the case serves as a cautionary tale for public
institutions and officials navigating sensitive social issues, employment termination, and public
communications.

Farrell v. Workgroup Designs Ltd., 2006 CanLII 18515 (ON CA)
In the case of Farrell v. Workgroup Designs Ltd. before the Court of Appeal for Ontario, the defendants
appealed a lower court decision which found that a binding employment agreement had been formed

between the plaintiff, Patrick Farrell, and the corporate defendants in February 2000. The appellants
argued that the trial judge erred in finding such an agreement existed and had ignored relevant evidence.
However, the Court of Appeal rejected this argument, noting that the trial judge had considered the
conflicting testimonies and explicitly chose to accept the evidence presented by the respondent and his
witness over that of the appellants. The appellate court emphasized that credibility assessments fall within
the purview of the trial judge and found no palpable or overriding error to warrant intervention.
The second issue on appeal concerned the respondent’s duty to mitigate damages following his dismissal.
The appellants argued that Farrell should have accepted a consulting role they offered after his
termination. However, the Court of Appeal agreed with the trial judge that the terms of the consulting
arrangement were significantly inferior and even demeaning compared to Farrell’s previous role as
president. The consulting position stripped him of corporate authority, halved his compensation, and
imposed conditions that undermined his professional standing. Therefore, the court ruled that Farrell was
under no legal obligation to accept such a diminished role to fulfill his duty to mitigate.
Lastly, the appellants challenged the length of the notice period and the award of Wallace damages for bad
faith dismissal. However, during oral arguments, they conceded these issues were contingent upon the
success of their primary argument regarding the existence of an employment contract. Since that
argument failed, the court upheld the trial judge’s rulings on all fronts. The appeal was dismissed, the
respondent was awarded $20,544 in costs, and the cross-appeal was noted as abandoned.

Portugal v. Car Park Management Services Ltd., 2004 CanLII 34308 (ON SC)
In Portugal v. Car Park Management Services Ltd., Rosa Portugal, a 59-year-old parking lot attendant
with 11 years of service, was dismissed from her job following a theft incident at her booth and a
subsequent lot check that revealed six unticketed vehicles. Portugal testified that while chatting with a
co-worker outside her booth, approximately $500 in cash was stolen from inside. Her employer, Don
Maclean, claimed that the theft, along with the letter unsatisfactory lot check, led to a loss of trust and
warranted her termination. However, Portugal maintained her innocence and described the emotional
distress the event caused her, while also indicating that she had minimal training and had consistently
performed her job well prior to the incident.
Justice Ducharme found that the employer failed to establish just cause for Portugal’s dismissal. He
accepted her explanation for the theft and found that, although she exhibited poor judgment in leaving the
money unattended, it did not amount to cause for termination. The Court also determined that Mr.
Maclean had already made up his mind to fire Portugal before the second incident occurred, suggesting
the lot check was used as a pretext to justify an already-decided dismissal. The judge noted that Portugal
had a solid employment record and that no consideration had been given by the employer to impose any
lesser disciplinary measure. Thus, her dismissal was ruled to be wrongful.
As a result, Portugal was awarded 12 months’ pay in lieu of notice, amounting to $15,937.56, with the
Court declining to deduct her Canada Pension Plan disability payments from this award. The Court
reasoned that disability payments, funded by both employee and employer contributions, served a distinct
purpose and should not offset wrongful dismissal damages. Additionally, the Court awarded Portugal

$8,600 in legal fees plus $713.76 in disbursements. While the employer’s actions were found to be
unjustified, the Court declined to award additional Wallace damages, finding no evidence of high-handed
or bad-faith conduct in the manner of the dismissal.

Johnson v. General Motors of Canada, 2009 HRTO 2151 (CanLII)
In Johnson v. General Motors of Canada Limited, the applicant, Yohann Johnson, alleged racial
discrimination in employment after a co-worker refused to attend training with him, allegedly due to
racism. He initially filed a complaint with the Ontario Human Rights Commission in 2005 but later
abandoned it in favour of an application before the Human Rights Tribunal of Ontario (HRTO). However,
Johnson had also initiated a civil lawsuit in 2008 against General Motors, seeking damages including lost
wages and benefits, punitive damages, and "Wallace" damages, based on the same events underlying the
human rights complaint.
The HRTO reviewed whether it had jurisdiction to hear the application, considering Section 34(11) of the
Ontario Human Rights Code. This provision prohibits an application to the Tribunal if a civil proceeding
has already been commenced in court regarding the same facts and that proceeding has not yet been
resolved. Although Johnson did not explicitly plead for remedies under Section 46.1 of the Code in his
civil claim, the Tribunal concluded that the claim was effectively seeking damages for a Code violation,
given the identical factual context.
Adjudicator Kaye Joachim ruled that permitting both proceedings would violate the intent of Section
34(11), which is to avoid duplicative litigation. Since Johnson had already pursued the matter through the
courts, and the civil case was still ongoing, the Tribunal was barred from adjudicating the human rights
application. The application was therefore dismissed on jurisdictional grounds.

Potter v New Brunswick Legal Aid Services, 2011 NBQB 296 (CanLII)
In Potter v. New Brunswick Legal Aid Services Commission, David Potter, the Executive Director of the
Commission, alleged constructive dismissal after being placed on an administrative suspension with pay.
Potter had been appointed for a fixed seven-year term and had delegated his responsibilities during a
medical leave. During this period, discussions began between him and the Board regarding a potential
buyout of his contract. Unknown to Potter, the Board recommended his dismissal to the Minister of
Justice and suspended his duties indefinitely. When Potter launched legal action claiming constructive
dismissal, the Commission treated it as a resignation and ceased his salary and benefits.
Justice Grant of the Court of Queen’s Bench of New Brunswick found that the Board acted within its
authority under the Legal Aid Act to suspend Potter and delegate his powers temporarily. The Court held
that the suspension was administrative and not a fundamental breach of the employment contract, noting
that Potter was still receiving full pay and benefits. The judge emphasized that there was no indication the
Commission had permanently removed Potter from his role or had repudiated the contract in a manner
that would lead a reasonable person to believe so. The legal action, therefore, constituted a repudiation by
Potter himself, effectively amounting to a resignation.

Although Potter was not successful in his constructive dismissal claim, the Court ruled he was still
entitled to both his regular and special retirement allowances (totaling 50 weeks of pay) and accrued
vacation pay, as these were separate contractual entitlements. The Court rejected his claims for general
and Wallace damages, finding no evidence of mistreatment or bad faith by the Commission during his
suspension or the negotiation period. Costs were awarded to the Commission based on the net value of
Potter’s unsuccessful damages claim.

Nuala MacDonald-Ross v. Connect North America, 2010 NBQB 250 (CanLII)
In MacDonald-Ross v. Connect North America, the plaintiff, Nuala MacDonald-Ross, was a long-term
employee of Connect North America Corporation, having worked her way up from telephone operator to
Director of Marketing over five and a half years. In 2007, after being informed that the company’s
operations in New Brunswick were shutting down, she was led to believe she would continue working,
only to later be told her job was over. MacDonald sued for wrongful dismissal, and the employer
subsequently alleged that she had engaged in unauthorized use of company funds, misappropriation, and
data destruction. The company also attempted to argue that she was laid off due to unforeseen business
losses and not terminated, relying on provisions in the Employment Standards Act.
The Court found in favor of MacDonald-Ross, determining that she was, in fact, terminated—not laid
off—and that her contract had not been mutually altered to a freelance agreement. It concluded that the
alleged misuse of incentive funds (referred to as “quit money”) was a previously condoned practice for
employee rewards and morale boosting, and there was no evidence she personally benefitted or stole
funds. Furthermore, the Court held that the employer’s attempt to justify her dismissal after the fact,
particularly following her legal action, was a demonstration of bad faith. The company’s
actions—contacting police with unfounded fraud allegations, conducting an internal audit to fabricate
cause, and posting defamatory statements online—were found to be retaliatory and malicious.
Although the Court did not award aggravated (Wallace) damages due to lack of medical or psychological
evidence, it awarded MacDonald-Ross eight months’ notice damages, totaling over $26,000, plus $2,000
in bonus loss and nearly $6,000 in vacation pay. Additionally, punitive damages of $50,000 were awarded
to denounce the employer’s egregious and retaliatory conduct. The Court held both Connect North
America and its U.S. counterpart jointly liable under the “common employer doctrine” and dismissed the
company’s counterclaim related to a reformatted laptop, finding no proof that data was lost or
unrecoverable.

Langan v. Kootenay Region Métis Association, 2008 BCSC 1169 (CanLII)
In Langan v. Kootenay Region Métis Association, the plaintiff, Karen Langan, was the Chief
Administrative Officer (CAO) of the KRMA from 2000 until her sudden suspension and termination in
early 2006. The termination was officially stated to be for “just cause,” citing staff concerns and breaches
of the organization’s employment code of conduct. However, during trial, it became evident that many of
these concerns were not substantiated. Most notably, none of the staff members who allegedly complained

testified in court, and Ms. Langan’s previous performance reviews and audit reports had consistently
praised her work. The accounting firm that later criticized KRMA’s internal controls had also previously
commended her professionalism and accuracy.
During trial, the defendants attempted to justify Ms. Langan’s dismissal using post-termination audit
findings, but these findings were not communicated to her at the time of dismissal and did not prove any
dishonesty or financial misconduct. The court found that while there were minor administrative
issues—such as her husband being paid through her cheques for occasional IT work and one instance of
personal credit card use that she promptly repaid—none of these amounted to serious misconduct or
justified summary dismissal. Justice Crawford emphasized that she was denied a fair process, as she was
not given a chance to respond to the allegations before being terminated. The court concluded that the
initial reason for her dismissal was largely based on vague “staff concerns,” which were not proven.
Ultimately, the Court found there was no just cause for dismissal and held both KRMA and Métis Nation
British Columbia (MNBC) jointly liable, noting that MNBC had effectively taken over the disciplinary
and termination process. Ms. Langan was awarded 15 months' pay in lieu of notice, less her subsequent
earnings. However, she was not granted additional damages for mental distress (Wallace damages), as the
evidence did not establish conduct by the defendants that was sufficiently unfair or in bad faith beyond
the wrongful dismissal itself. The Court left the issue of costs open for further submissions.

Active Transport Inc. v. Ladizhinsky Estate, 2007 CanLII 6577 (CA LA)
In the arbitration between Active Transport Inc. and the Estate of the late Natan Ladizhinsky, Arbitrator
Christopher Albertyn addressed the issue of compensation following a previous finding of unjust
dismissal. In the initial July 2006 award, the Arbitrator determined that the Company was liable for the
income Mr. Ladizhinsky would have earned between February and mid-September 2004 had he remained
employed. The parties could not agree on damages, so further written submissions were made. The Estate
calculated lost earnings at $24,677.12, which the Company accepted, but sought deductions for vehicle
maintenance costs, totaling $3,005.12. The Arbitrator found this deduction reasonable, resulting in a final
lost earnings award of $21,672.
The Company also attempted to reduce damages based on income Mr. Ladizhinsky earned from other
sources in 2003, arguing this as mitigation. However, the Arbitrator rejected this argument, noting that
evidence showed Mr. Ladizhinsky had been unable to work during the relevant period in 2004 and made
consistent efforts to find employment. Thus, no further deductions were warranted. The Estate also sought
$75,000 in punitive and aggravated damages, referencing Keays v. Honda Canada Inc., but the Arbitrator
found the circumstances of Ladizhinsky’s dismissal did not warrant such compensation, as there was no
evidence of malice or bad faith by the Company.
Regarding costs, the Estate initially sought $12,600, alleging the Company deliberately prolonged the
matter. However, in the absence of supporting evidence, and given the Company’s willingness to pay a
portion, the Arbitrator awarded $5,000 in costs. In total, Active Transport Inc. was ordered to pay $26,672
to the Estate, including damages and costs. The Arbitrator retained jurisdiction over any disputes arising
from the implementation of the award.

Kalsi v. Greater Vancouver Associate Stores Ltd., 2009 BCSC 287 (CanLII)
In Kalsi v. Greater Vancouver Associate Stores Ltd., the plaintiff, Mr. Jatinder Kalsi, was a long-serving
mechanic with Canadian Tire who was dismissed after allegedly attempting to steal a light bulb from the
store where he had worked for 16 years. The store accused Mr. Kalsi of theft based on an incident where
he placed a headlight bulb in his jacket pocket after retrieving it from a locked display case, which he
accessed using keys handed to him by a clerk. Security personnel, having observed the incident, detained
Mr. Kalsi and escalated the matter to senior management. Mr. Kalsi maintained throughout that he had no
intention to steal the item and that he was merely checking if the bulb fit his vehicle before returning to
pay for it, a practice he claimed was common among mechanics at the store.
The court carefully analyzed the conflicting testimonies of Mr. Kalsi, security officer Mr. Leland, store
manager Ms. Cserenyi, and operations manager Mr. Duncan. The judge found that Mr. Kalsi had indeed
informed both the service technicians and the retail clerk of his intentions and had not left the store
premises with the bulb. The court concluded that the evidence did not support the store's claim of theft,
particularly given the defendant's failure to properly investigate the matter or corroborate Mr. Kalsi’s
story with key witnesses, including the mechanics and the clerk. As a result, the court found that Mr.
Kalsi was wrongfully dismissed and had not committed theft.
Ultimately, the court ruled in favour of Mr. Kalsi, awarding him 16 months' salary as reasonable notice for
wrongful dismissal, and an additional $6,500 in general damages for false imprisonment due to the
excessive and improper nature of his detention. However, the court declined to award punitive damages or
Wallace (bad faith) damages, noting that although the employer’s investigation was flawed, there was
insufficient evidence of malicious intent. The case underscores the importance of thorough and fair
internal investigations by employers, especially when serious accusations like theft are involved.

Stanley v. Advertising Directory Solutions Inc., 2012 BCCA 350 (CanLII)
In Stanley v. Advertising Directory Solutions Inc. (2012 BCCA 350), Susan Stanley, a certified general
accountant, was initially employed by Dominion Directory, later a subsidiary of Verizon Information
Services Inc. After working with Verizon in Texas, she returned to Canada in 2001 under a unique
agreement negotiated with Verizon executive Bennett Cepak. This arrangement included a salary in U.S.
dollars, a bi-weekly allowance to offset Canadian tax disadvantages, and participation in Dominion’s
pension and benefit plans. A formal offer letter from Verizon set out her employment terms, stating
clearly that the employment was “at-will.” Upon her return to Dominion to assist with integrating Telus’
acquired assets, Stanley operated as a senior executive but was technically treated, in certain respects, as a
Verizon employee.
When Verizon sold Dominion to Bain Capital in 2004, Stanley was terminated and offered a severance
package she found inadequate. She sued Dominion for wrongful dismissal, asserting it was her employer.
The trial judge concluded that, for salary and notice purposes, Stanley was employed by Verizon and
dismissed her wrongful dismissal claim. However, the court found she was employed by Dominion for
other purposes, such as pension and holiday pay entitlements. The judge awarded her holiday pay and

recognized her prior service in Texas for Dominion pension purposes but denied her claim under the
supplementary pension plan and for certain performance bonuses and benefits.
The British Columbia Court of Appeal disagreed with the trial judge's ruling that Stanley was not
employed by Dominion for notice purposes. Citing the Employment Standards Act and the nature of
Stanley's actual work relationship with Dominion, the Court held that Stanley was indeed an employee of
Dominion entitled to reasonable notice upon termination. The appeal was allowed in part, and the case
was remitted to the Supreme Court to assess the appropriate notice period and damages, including
potential “Wallace damages” for bad faith dismissal. The appeal for a 2004 performance bonus was also
allowed, and the judge’s interpretation of the stock option expiry date was revised to reflect the proper
notice period.

Murphy v. National Fast Freight Inc., 2004 CanLII 33025 (ON SC)
In Murphy v. National Fast Freight Inc., the defendant sought to strike out certain paragraphs of the
plaintiff’s statement of claim or alternatively obtain further particulars regarding allegations of
defamation, mental distress, and claims for punitive and aggravated damages. The defendant argued that
these claims were not properly pleaded, particularly noting the lack of detail about the alleged defamatory
statements. However, the court found that although paragraphs 9–12 lacked specificity, they followed
paragraphs that included clear defamatory allegations — including accusations of theft and dishonesty —
and thus the plaintiff could not reasonably be expected to know all the details about their publication at
this stage. Therefore, the request to strike those parts was denied.
The court took issue with the way the damages were pleaded. It emphasized that while punitive and
exemplary damages are synonymous, aggravated damages are different and compensatory in nature.
Master MacLeod referred to Supreme Court authority which clarified that punitive damages are
exceptional and must be tied to outrageous conduct, while aggravated damages address unique emotional
harm caused by the defendant’s conduct. The court concluded that the plaintiff had to provide particulars
for both aggravated and punitive damages to clarify the specific impacts of the alleged wrongful actions
and the justification for each type of damage claim.
Furthermore, the court ruled that the plaintiff must also provide particulars for the mental distress claim,
which was vaguely stated and did not differentiate between distress caused by defamation and any other
conduct. The court did not strike the claims but ordered the plaintiff to provide the necessary particulars
by April 22, 2004, with the defence to follow by May 13, 2004. It also invited the parties to address any
resulting delays in the proceedings and stated there would be no costs for the motion unless written
submissions were made by May 1.

Clark v. BMO Nesbitt Burns, 2007 CanLII 44172 (ON SC)
In Richard Clark v. BMO Nesbitt Burns, the plaintiff, Richard Clark, sued for wrongful dismissal after
being terminated without cause in April 2004 following 17 years of employment as an investment advisor.
Clark had developed a $42 million Book of Business and had made arrangements to potentially sell it to a
co-worker, Mr. Leith, particularly after being charged criminally. Although BMO had previously

approved such transfers, Clark was not given the opportunity to complete a sale before being abruptly
dismissed and barred from accessing his client information, which significantly harmed his ability to
transition or rebuild his business elsewhere. The court found that BMO, particularly through its regional
manager Mr. Lessard, acted unfairly and unreasonably in refusing Clark the chance to sell his Book.
The court accepted that Clark would not have been able to find comparable employment in the brokerage
industry while his criminal charges were pending, or even after his conditional sentence, due to the nature
of the industry. Clark instead pursued a startup business in athletic consulting, which was deemed a
reasonable and foreseeable course of mitigation under the circumstances. The court ruled that Clark’s
inability to mitigate his damages was not due to a lack of effort but rather a result of the circumstances
surrounding his dismissal and the criminal charges, which had not yet been resolved at the time of
termination. The court rejected BMO's claim that Clark failed to mitigate and noted that his efforts to
establish a new business were appropriate given the context.
Ultimately, the court found that Clark had been treated unfairly and was entitled to 18 months’ pay in lieu
of notice, Wallace damages for the manner of his dismissal, and compensation for the lost opportunity to
sell his Book. The court fixed the value of the Book at $90,000 and awarded a total judgment of
$267,968.07, less any statutory termination and severance already paid. The judge emphasized that
BMO’s handling of the termination lacked good faith and consideration for Clark’s long service, causing
unnecessary hardship and lost opportunity.

Doyle v. Zochem Inc., 2017 ONCA 130 (CanLII)
In Doyle v. Zochem Inc., the Ontario Court of Appeal upheld a trial decision awarding Melissa Doyle
$60,000 in moral damages due to the bad faith manner in which her employer, Zochem Inc., dismissed
her. Doyle had worked at Zochem for nine years as a plant supervisor, during which time she was
subjected to repeated sexual harassment by a male colleague. After raising safety concerns during a
meeting and subsequently filing a complaint about the harassment, Doyle was terminated just days later.
The court found that the dismissal was motivated not only by a desire to terminate her employment
without cause, but also due to her gender and her sexual harassment complaint, which had been handled
in a dismissive and insensitive manner by her supervisor.
The Court rejected Zochem’s arguments that the moral damages award should be reduced, clarifying that
even though some factors considered by the trial judge may have been legally irrelevant, the key
aspects—such as misleading Doyle about her job security, conducting a superficial harassment
investigation, attempting to pressure her into signing a release without legal advice, and denying her
short-term disability benefits—were sufficient to justify the award. The Court also held that the award for
moral damages did not duplicate the separate $25,000 awarded under the Ontario Human Rights Code for
sexual harassment, as each served different legal purposes: moral damages compensating for bad faith in
dismissal and Code damages for the loss of the right to be free from harassment.
Ultimately, the Court emphasized that Zochem’s conduct—ranging from instructing employees to gather
negative information about Doyle, misleading her, and treating her termination in a cold and degrading
manner—warranted a substantial moral damages award. It refused to reduce the $60,000 figure, citing it

as consistent with comparable cases and supported by the facts. In addition, Doyle was awarded $40,000
in substantial indemnity costs, as Zochem’s decision to appeal was found to be a continuation of its
oppressive treatment.

Dupuis v. Edmonton Cellular Sales Ltd., 2006 ABCA 283 (CanLII)
In Dupuis v. Edmonton Cellular Sales Ltd., the Alberta Court of Appeal reviewed a wrongful dismissal
case where Shawn Dupuis, a former manager at Edmonton Cellular, had been fired without notice after
allegations of inappropriate touching of female employees. Although Dupuis admitted to the touching, the
trial judge found it was not sexual in nature, did not constitute sexual harassment, and concluded that
while the conduct was inappropriate, it did not warrant immediate dismissal without first issuing a
warning. Consequently, the trial judge found Dupuis was wrongfully dismissed and awarded him five
months’ pay in lieu of notice, which was doubled to ten months under the Wallace principle due to the
perceived bad faith in the dismissal process.
The employer, Edmonton Cellular, appealed, arguing that the touching constituted sufficient cause for
dismissal and that the Wallace enhancement was unjustified. The Court of Appeal acknowledged that
inappropriate touching can be cause for dismissal depending on the context but emphasized the standard
of review for wrongful dismissal decisions. The Court found that the trial judge had appropriately
considered the context, including the responses of the affected employees, and that his decision not to find
just cause was not a palpable and overriding error.
However, the Court of Appeal overturned the additional five months of damages awarded under Wallace,
concluding that the employer’s actions—terminating Dupuis upon return from vacation, not accepting a
resignation, and not providing a reference—did not amount to bad faith conduct in the manner of
dismissal. As a result, the Wallace bump was removed, and Dupuis was awarded five months’ pay in lieu
of notice only. Each party was ordered to bear their own costs on appeal.

Headley v. City of Toronto, 2019 ONSC 4496 (CanLII)
In the case of Headley v. City of Toronto, the plaintiff, Mark Headley, a long-term employee of Seaton
House, filed a wrongful dismissal claim against the City after his employment was terminated on the
grounds of alleged theft and gross neglect of duty. The City accused Headley of stealing maintenance fees
from clients and failing to properly manage client funds, citing specific incidents involving a resident
named John Hinks. Headley vehemently denied the allegations, asserting that he had issued receipts to
Hinks in response to his crisis over not having funds for payment, rather than with any intention of theft.
The Court was tasked with determining whether the City had just cause for dismissal or if Headley was
entitled to damages in lieu of notice.
Justice M.A. Sanderson conducted a comprehensive review of the evidence, including testimony from
co-workers and the circumstances surrounding the alleged misconduct. The Court found significant flaws

in the City’s investigation, including a lack of thoroughness and reliance on incomplete evidence from
witness accounts and internal audits. Particularly, the Court noted that others had access to the shift
leaders' office where client funds were kept and that there was a pattern of client funds going missing
before and after Headley's dismissal. Ultimately, the Judge ruled that the City had failed to prove just
cause for termination, concluding that Headley’s actions did not warrant the severe disciplinary action of
dismissal, especially considering his dedication and long-standing service to Seaton House.
As a result, the Court awarded Headley a total of $105,117.84 in damages for wrongful dismissal, plus
additional compensatory damages for the distress caused by the manner of his dismissal, totaling $15,000,
and for tangible financial loss caused by the unfair termination, amounting to $50,000. The Court did not
grant punitive damages, emphasizing that while the City’s conduct during the dismissal process was
unfair and insensitive, it did not rise to the level of malice necessary to warrant such a sanction. The
judgment highlighted the importance of reasonable and fair treatment of employees, particularly those in
sensitive positions serving vulnerable populations.

Employer Bullying: Implied Duties of Fair Dealing in Canadian Employment Contracts,
2005 CanLIIDocs 295
In his paper, David J. Doorey examines the evolving interpretation of employment contracts in Canada,
with a specific focus on "employer bullying" and its implications for fair dealing obligations. The author
identifies a shift in the dynamics of power between employees and employers, spurred by changing
perceptions of the treatment and welfare of employees. Canadian law has adopted two primary
approaches to addressing employer bullying: one that treats such actions as a breach of the implied duty
of fair dealing within the employment contract (repudiation-by-breach-of-contract or RBB), and another
that views it as a repudiation of the contract itself, without any specific breach
(repudiation-without-a-breach or RWB), as such conduct renders the employment relationship intolerable.
Doorey critiques both approaches, arguing that the RBB approach better protects employees by allowing
for compensation related to grievances arising during the course of their employment, rather than only at
dismissal. He compares the Canadian perspective to the British model, which relies on an implied duty of
trust and confidence that obligates employers to uphold a safe and supportive work environment. The
paper also reviews the complicating factors introduced by the Supreme Court of Canada's decision in
*Wallace*, which stipulates that damages for bullying during the manner of dismissal should be
calculated through an extension of the notice period. Doorey proposes a test for determining when
bullying occurs during the employment relationship to clarify the corresponding damages.
Ultimately, the author advocates for a dual recognition of employers' obligations, emphasizing a duty of
fair dealing in the contract's performance and a good faith requirement in the process of dismissal. By
doing so, he argues that there would be an improved legal framework for addressing the serious issue of
employer bullying, granting employees enhanced protections and remedies against psychological and
physical harm caused by workplace bullying. This nuanced understanding of employer duties could
contribute to a more equitable balance in the employer-employee relationship within the evolving
landscape of Canadian employment law.

Slepenkova v. Ivanov, 2009 ONCA 526 (CanLII)
In *Slepenkova v. Ivanov* (2009), the Ontario Court of Appeal considered two appeals arising from
judgments previously rendered by Justice Maureen D. Forestell of the Superior Court. The cases, brought
by plaintiffs Ilona Slepenkova and Yuliya Nikolova against their employer Vess Ivanov, were linked by a
common factual background and similar legal issues regarding the nature of employment contracts and
the award of damages for wrongful dismissal. The appellant, Ivanov, challenged the trial judge's
determinations that the employment contracts were indefinite-term and that the notice provisions within
those contracts were inapplicable.
The Court upheld the trial judge’s findings, emphasizing that the significant discrepancies between the
written contracts and the actual conduct of the parties supported the conclusion that the respondents were
entitled to reasonable notice of termination. The appeal concerning Slepenkova's award of Wallace
damages, which amount to two months’ pay, was dismissed because the trial judge had determined that
damaging messages sent by Ivanov to other agents about her job performance were unfounded and
harmful to her reputation. The Court found this evidential basis sufficient to uphold the award in her case.
Conversely, the appeal regarding Nikolova's damages award was allowed in part, as there was insufficient
evidence to support that she endured similar reputational harm or damages since no damaging messages
were sent about her. Consequently, the judgment was modified to remove the Wallace award for
Nikolova. Furthermore, the Court ordered that the appellant Ivanov pay the costs of the appeal, totaling
$12,500 to each of the respondents, inclusive of disbursements and taxes, marking a comprehensive
resolution to the legal matters surrounding both plaintiffs' claims.

Davis v. Honda of Canada Mfg., 2008 CanLII 48641 (ON SC)
In the case of *Davis v. Honda of Canada Mfg.*, heard by Justice David Aston, the court addressed a
motion to strike portions of the plaintiff's Statement of Claim related to claims of breach of contract,
unfair business practices, and other damages. The parties had resolved many of their disputes, but several
key issues remained. The court ruled that claims of "breach of contract," "unfair business practices," "lost
earning capacity," and "lost opportunities for advancement" were struck from the proposed Statement of
Claim. The court found that these claims extended beyond what is permissible in a wrongful dismissal
action, consistent with the precedent set in *Honda Canada Inc. v. Keays*.
Additionally, the court removed references to the Canada Labour Code from the claim, as the plaintiff
could not identify a specific section that entitled him to monetary compensation, given that the
Employment Standards Act more comprehensively governed such matters. The court also considered the
relationship between the allegations of constructive dismissal and the separate statutory regimes
established by the Workplace Safety and Insurance Act (WSIA). It ultimately decided that some claims
were an attempt to circumvent the exclusive jurisdiction of the WSIA and struck them as outside the
plaintiff’s wrongfully dismissal claims.
Further examinations of the claims revealed that certain parts of the Statement of Claim contained
improper allegations against the defendant related to vicarious liability for the conduct of the plaintiff’s

superiors. However, the court permitted the claim for intentional infliction of mental distress, as it
provided necessary clarification. Other allegations of encouragement were also struck down due to a lack
of specificity. The court concluded this portion of the proceedings by allowing for written submissions on
costs should the parties be unable to reach an agreement.

Fedorowicz v. Pace Marathon Motor Lines Inc., 2006 CanLII 2403 (ON SC)
In Fedorowicz v. Pace Marathon Motor Lines Inc., Deborah Fedorowicz, a former bookkeeper for Pace,
sought damages for wrongful dismissal and malicious prosecution after her employer, George Mallouk,
accused her of theft and filed criminal charges against her. The case stemmed from a complicated
employment relationship characterized by irregular compensation practices, including cash payments to
evade taxes. Following a diagnosis of breast cancer, Fedorowicz sought to clarify her employment status
and income during her maternity leave, but her communications with Mallouk soured, leading to the
employer's abrupt withdrawal of support and subsequent allegations of fraud totaling $46,840. After a
lengthy legal battle, the criminal charges were withdrawn nearly two years later for public interest
reasons, but not before significantly impacting Fedorowicz's mental health and reputation.
The trial revealed substantial discrepancies in the testimonies of both parties regarding the nature of
Fedorowicz's compensation and the understanding surrounding her employment status during her illness.
While Fedorowicz maintained she was entitled to regular employment payments, Mallouk claimed he was
unaware of certain payments, suggesting a lack of oversight in financial management. The court
determined that Fedorowicz's termination was effectively a constructive dismissal, resulting from
Mallouk imposing unreasonable conditions for her return to work after maternity leave and his failure to
communicate effectively regarding her employment status. The judge ruled that an eight-month notice
period was appropriate due to her senior role, emotional vulnerability, and the handling of her situation by
her employer.
Ultimately, the court awarded Fedorowicz damages for wrongful dismissal alongside $35,000 for
malicious prosecution, recognizing the severe collateral consequences of the criminal charges on her life
and career. The judge also directed attention toward the parties' admissions of tax evasion during the trial,
highlighting a broader ethical consideration and indicating the court's role in reporting such conduct to the
relevant authorities. This decision reflected the intertwining of personal and professional responsibilities
in the realm of employment law, particularly pertaining to the treatment of employees facing illness and
the implications of alleged misconduct in the workplace.

Bouma v. Flex-N-Gate Canada Co., 2004 CanLII 66311 (ON SC)
In *Bouma v. Flex-N-Gate Canada Co.*, the Ontario Superior Court of Justice addressed a wrongful
dismissal claim by Grant Bouma, a former Maintenance Manager who had been employed for 22 years.
Bouma was dismissed "for cause" following an investigation into his use of company resources for
personal projects, particularly the fabrication of a patio table from materials ordered for plant use. The
court examined the longstanding practice at the plant, referred to as "government work," where
employees could use company time and materials for personal projects without formal guidelines. The
ruling emphasized Bouma's discretionary authority as a member of management, which permitted him to

order materials, and concluded that the company's assertion that his actions constituted theft or breach of
trust was unfounded.
The trial revealed significant contradictions in the testimonies of the company's management, particularly
around the nature of Bouma's dismissal and the alleged misconduct. Key witnesses acknowledged an
established culture of "government work" at the plant, indicating that it was common for employees to
engage in personal projects using company resources. The defense was criticized for its lack of due
diligence and communication, especially regarding the handling of Bouma's tools after his termination,
which were stolen while in the company's possession. This conduct raised concerns about the employer's
treatment of Bouma post-termination, which included deceptive communications regarding the retrieval
of his personal items.
Ultimately, the court found that Bouma's dismissal was without cause and awarded him damages that
included 20 months' salary for wrongful dismissal, four months of Wallace damages for the manner of
dismissal, and $15,000 in aggravated and punitive damages for the company's treatment of him during
and after his employment. The ruling highlighted the unjust character of the dismissal, supported by the
egregious conduct of the employer, and emphasized the need to hold organizations accountable for their
treatment of employees. Moreover, the case underscored the importance of clear policies and enlightened
employee-management relations within corporate environments.

Budhram v. 1257229 Ontario Ltd., 2007 CanLII 15793 (ON SC)
In *Budhram v. 1257229 Ontario Ltd.*, the Ontario Superior Court of Justice addressed a wrongful
dismissal claim brought by Sharon Budhram against her former employers, including multiple corporate
entities and Mark Connon. Budhram worked for the defendants as a part-time employee and independent
contractor at a fitness center for over four years, where she was responsible for selling memberships,
conducting fitness assessments, and providing personal training services. She was terminated without
notice on May 28, 2003, shortly after a significant bonus, with the defense asserting that her dismissal
was due to alleged fraudulent activity linked to falsifying fitness service records.
The court found that Budhram was wrongfully dismissed, concluding that the defendants failed to justify
the termination. Despite the defendants' claims of improper conduct, the court established that Budhram's
actions fell within a long-standing practice at the company concerning the use of company time and
resources for personal projects, known as "government work." In addition, the court ruled that Budhram's
employment status had evolved into that of a full-time employee based on her working hours and the
nature of her compensation, which included deductions for wages and time worked.
As a result, Budhram was awarded damages totaling $15,818.10, which included four months' salary for
wrongful dismissal and an additional month's wages as punitive damages due to the manner of her
termination. The court held that while Budhram had a role in the circumstances leading to her dismissal,
the treatment she received during and after her employment was unjustifiable. It was also noted that
Connon, acting on behalf of the defendants, while having some personal involvement with financial
matters, was not held personally liable for the corporate debt. The court reserved the issue of costs,
instructing both parties to submit written arguments regarding the costs associated with the case.

Lowndes v. Summit Ford Sales Ltd., 2006 CanLII 11654 (ON CA)
In the case of *Lowndes v. Summit Ford Sales Limited*, the Ontario Court of Appeal reviewed a trial
judgment concerning the wrongful termination of Grant Henry Lowndes, who was employed by the
defendants, including Summit Ford Sales and several individuals. Lowndes claimed damages for
wrongful dismissal, and the trial court awarded him damages which included "Wallace" damages and
bonus compensation after finding that his termination was improper. The defendants appealed the
decision, raising multiple grounds of appeal but focusing on issues concerning reasonable notice of
termination and the calculation of prejudgment interest.
The Court of Appeal found in favor of the appellants on several key issues, particularly regarding the base
period for determining reasonable notice and the appropriate method for calculating prejudgment interest.
However, the court upheld the trial judge's ruling on Wallace damages and the calculation of Lowndes'
entitlement to bonus compensation, indicating that the trial court's assessment in these regards was sound.
The judges acknowledged that while the appellants had successes in their appeal, the respondent also
prevailed on significant components of the case.
Ultimately, the Court decided not to award costs for the appeal to either party. Although typically a
prevailing party would receive costs, the court determined that the successes of both sides were
sufficiently divided, and thus it would not deviate from the standard rule concerning costs in such
scenarios. The judgment maintained the trial court's earlier cost awards to Lowndes, while also
recognizing the settlement offer made by Lowndes was insufficient to alter the cost decision on appeal.
The judges concluded that a fair outcome was to award no costs for the appeal.

Argiropoulos v. Noma Company, 2005 CanLII 62881 (ON SC)
In the case of *Argiropoulos v. Noma Company*, the Ontario Superior Court of Justice heard a wrongful
dismissal claim brought by Mary Argiropoulos, a long-serving employee of Noma Company, against her
former employer. Argiropoulos had worked for Noma for 16 years, rising to the position of Health &
Safety Co-ordinator and Production Supervisor. She was dismissed in October 2003, shortly after her
return to work from surgery, without notice or consideration beyond her statutory minimum entitlement.
The court found that Argiropoulos was entitled to 14 months' pay in lieu of notice, considering her age,
length of service, and position within the company. Her annual income was estimated at $63,000, based
on her previous earnings and benefits. The court also addressed Argiropoulos' overtime claims, finding
them to be unsubstantiated and denied. Furthermore, the court rejected Argiropoulos' claims for mental
distress, aggravated, punitive, and exemplary damages, as they did not meet the Supreme Court of
Canada's tests for such damages.
Ultimately, the court awarded Argiropoulos $73,500 in damages, less statutory payments previously made
under the Employment Standards Act. Additionally, the court ordered the defendant to pay $12,000 for
costs, which was later revised down to $3,000 after the defendant made a Rule 49 Offer that bettered the
original offer. The court also awarded Argiropoulos pre-judgment interest in accordance with the Courts

of Justice Act. The decision acknowledged Argiropoulos' suffering and stress caused by her dismissal but
determined that the damages she sought were not justified under the applicable law.

Dawydiuk v. Insurance Corporation of British Columbia, 2009 BCSC 518 (CanLII)
In *Dawydiuk v. Insurance Corporation of British Columbia*, Jackie Dawydiuk brought an action against
the defendant for wrongful dismissal and defamation after she was terminated from her position.
Dawydiuk's employment with the defendants began in 1987, and she rose through the ranks to become a
Production Supervisor and Health & Safety Coordinator. Her employment ended in 2003 amid a corporate
reorganization, during which she was dismissed and received no more than the statutory minimum
severance. Following the dismissal, Dawydiuk experienced significant distress and initiated legal
proceedings against the corporation and its representatives.
The defendants sought to strike the jury notice filed by Dawydiuk, contending that the issues at hand were
too complex and intricate for a jury to resolve, particularly citing the presence of legal matters such as
wrongful dismissal, defamation, and breaches of the Human Rights Code. However, the court found that
no such complexities precluded a jury trial and that actions in defamation were expressly not subject to
the restriction that the defendants argued. The evidence presented did not sufficiently demonstrate that the
nature of the case was more complicated than typical jury trials involving personal injury.
Ultimately, the court denied the defendants' application to strike the jury notice on the basis that the issues
remained accessible for jury consideration and that the legal standards of defamation do not allow for
such an application under the applicable rules. The ruling emphasized that despite the defendants’
arguments regarding intricacy and complexity, the matters before the court were not beyond the
comprehension of a jury, thereby ensuring that Dawydiuk's case would be heard by a jury. The decision
highlighted the court's commitment to upholding a plaintiff's right to trial by jury in appropriate
circumstances.

CEL-04639-10 (Re), 2010 CanLII 58777 (ON LTB)
In the case of *Dawydiuk v. Insurance Corporation of British Columbia*, Jackie Dawydiuk sought
damages against her former employer following her dismissal from a position she had held since 1987.
Initially, her claim evolved from seeking a declaration of her employment status to focusing primarily on
allegations of defamation arising from communications related to her termination. The Landlord, Noma
Company, applied to strike the jury notice, arguing that the issues in the case were too complex for a jury
trial. The defense posited that intricacies surrounding allegations, defamation, and the law made the case
more suitable for a judge-alone trial.
The court found that Dawydiuk's case had fully developed the necessary legal foundations for both
wrongful dismissal and defamation claims, ultimately dismissing the defendant's application to strike the
jury notice. The judge determined that defamation claims do not fall under the jurisdictional constraints
suggested by the defense and maintained that the jury could reasonably handle the matters presented,
despite the complexities involved. The court also ruled that the intrinsic nature of the issues did not

warrant the removal of a jury and emphasized the principle that juries often deal with intricate matters,
using personal injury cases as a comparable reference.
Ultimately, the court's decision underscored the importance of a plaintiff's right to have their case heard
by a jury when it involves claims that are accessible and rooted in clear legal standards, even if they
contain elements perceived as complex. The judge rejected the defense's arguments concerning the
intricacies of the legal issues, including defamation, wrongful dismissal, and potential breaches of the
Human Rights Code, concluding that these did not exceed the jury's capacity to adjudicate. This ruling
affirmed Dawydiuk's right to pursue her claims in a jury trial, reinforcing the significance of jury trials in
upholding justice in employment-related disputes.

Bishop v. Cragg, 2009 NSSM 6 (CanLII)
The case of Bishop v. Cragg, 2009 NSSM 6 revolves around a wrongful dismissal dispute brought before
the Small Claims Court of Nova Scotia. Beverley Bishop and Michelle Soucy, the claimants, were
long-time and relatively senior employees of Robert Cragg, a lawyer practicing in Halifax. Both women
were terminated from their employment on September 12, 2006, without prior written warnings or notice.
They alleged that the terminations were unjustified and sought compensation for wrongful dismissal and
unpaid vacation. Their claims were supported by the fact that they had not received formal disciplinary
action, and that Cragg had even provided them with pay increases shortly before the dismissal. Cragg, on
the other hand, asserted that the two had developed hostile attitudes, were difficult to manage,
insubordinate, and disruptive to office harmony, culminating in allegations of improper access to private
emails.
The decision largely turned on assessing credibility, as the testimonies of the parties directly contradicted
each other. Cragg maintained that he had verbally warned the claimants and believed their behavior
warranted dismissal for cause, citing poor attitudes, refusal to follow office procedures, and general
discord. His narrative was partially corroborated by two other staff members, including a fellow lawyer,
Ms. Wozniak, and the office manager, Ms. Laurence, both of whom described Bishop and Soucy as
difficult and at times bullying. Nevertheless, neither Cragg nor his staff could produce written records of
warnings or performance reviews that might justify summary dismissal. The women denied wrongdoing,
insisting that their work was competent and that they were shocked by their sudden terminations.
Chief Adjudicator Gavin Giles, Q.C., ultimately found that the evidence did not support the claim of just
cause for dismissal. While the workplace environment was evidently strained and the claimants had, at
times, challenging personalities, the employer failed to provide adequate warnings or document
performance concerns. As such, the dismissals were ruled to be wrongful. The court awarded damages in
lieu of notice and unpaid vacation to the claimants, concluding that interpersonal conflict and allegations
of misconduct, without clear procedural fairness or proof of serious misconduct, were insufficient to
bypass an employee’s legal right to reasonable notice.

Lewis v. Terrace Tourism Society, 2010 BCCA 346 (CanLII)

In Lewis v. Terrace Tourism Society, 2010 BCCA 346, Jennifer Lewis, the former executive director of
the Terrace Tourism Society, sued her employer for wrongful and constructive dismissal after learning
that her position was to be eliminated while she was on maternity leave. The Society had lost its public
funding and voted to dissolve, initiating steps to wind down operations. While determining severance
packages, Ms. Lewis pre-emptively filed a small claims action, alleging that she had already been
dismissed without notice or severance. In response, the Society terminated her employment, citing her
lawsuit as cause. The B.C. Supreme Court found that the Society had not constructively dismissed Lewis,
but rather that she had repudiated her employment contract by suing prematurely.
On appeal, the British Columbia Court of Appeal was divided. Justice Frankel, writing for the majority,
upheld the trial decision. He emphasized that while the Society was indeed ceasing operations, no formal
dismissal had occurred when Lewis initiated legal action. As she was on unpaid maternity leave and not
actively performing duties, the employment relationship was effectively in abeyance. The Society had
been in the process of determining a severance offer, which, in the Court's view, demonstrated intent to
fulfill its obligations. Justice Frankel concluded that Lewis’s lawsuit amounted to a repudiation of the
employment contract, thus giving the Society just cause to terminate her employment.
In dissent, Justice Levine found that Lewis had been constructively dismissed when the Society resolved
to dissolve and explicitly noted the termination of her position. She argued that the fact Lewis was on
leave did not diminish her legal entitlement to notice or severance. The Society’s failure to provide timely
notice or compensation constituted a repudiation of the employment contract. Consequently, Lewis was
within her rights to sue, and her legal action should not be viewed as a repudiation. Justice Levine would
have allowed the appeal and remitted the matter for assessment of damages, a position concurred in by
Justice Low.

Alberta Health Services (Calgary Area) v. Health Sciences Association of Alberta (Paramedical
Professional/Technical Unit), 2010 ABQB 555 (CanLII)
In Alberta Health Services (Calgary Area) v. Health Sciences Association of Alberta (Paramedical
Professional/Technical Unit), 2010 ABQB 555, Alberta Health Services (the Employer) sought judicial
review of an arbitration decision involving the dismissal of Sarah Munro, an employee suffering from
multiple sclerosis. Munro had been on long-term disability since 2004 due to her condition and had not
provided updated medical information since 2005. In March 2007, without prior notice or a meeting, the
Employer terminated her employment for excessive non-culpable absenteeism. An arbitration board
found that while the Employer had just cause for dismissal under the legal standard of excessive
absenteeism with no foreseeable return to work, it had breached the collective agreement by failing to
meet with Munro and her union representative before the dismissal, as required under Article 37.10.
The arbitration board concluded that this procedural violation rendered the dismissal null and void. It
ordered Munro’s reinstatement and mandated that the Employer provide her the opportunity to present
updated medical information, meet with a union representative, and have her situation reassessed in good
faith. Additionally, the Board awarded her $2,000 in damages for the inappropriate manner of her
dismissal. On judicial review, the Court considered whether the Board’s decision was reasonable,

especially its interpretation of the collective agreement and the requirement for a disciplinary meeting,
even in non-culpable dismissals.
Justice Hunt McDonald of the Alberta Court of Queen’s Bench upheld the arbitration board’s decision,
emphasizing that it was reasonable, transparent, and aligned with established human rights and labour
law. The Court supported the Board’s broad interpretation of “discipline” under Article 37.10 to include
non-culpable dismissals, particularly where employees face serious consequences like termination. The
judgment confirmed the importance of procedural fairness and union representation, reinforcing that even
in cases of innocent absenteeism, employees are entitled to due process before termination.

Curtis v. The Bank of Nova Scotia, 2019 ONSC 7539 (CanLII)
In Gary Curtis v. The Bank of Nova Scotia, the plaintiff, Gary Curtis, a former mortgage development
manager with BNS, sought to amend his claim and compel further document production. The dispute
stemmed from Curtis’ resignation in April 2012 after being suspended by BNS due to concerns of
fraudulent mortgage files. Initially, Curtis filed for wrongful and constructive dismissal and defamation.
However, after an adjudicator found he had voluntarily resigned and the Federal Court upheld that
decision, Curtis removed the dismissal claims, focusing solely on defamation. Years later, he attempted to
reintroduce multiple claims—including bad faith breach of contract, negligent investigation, and breach
of privacy—arguing new evidence justified them.
The Court, led by Master C. Wiebe, largely denied Curtis’ proposed amendments on grounds that they
were either time-barred under Ontario’s Limitations Act or had previously been disallowed by court
rulings. The bad faith employment and negligent investigation claims were ruled out as either abusive of
process or already addressed in earlier decisions. However, the Court did allow amendments related to
defamation and emotional distress, including allegations of malicious referencing, interference with
economic relations, breach of privacy, and emotional distress. These were seen as either extensions of his
original defamation claim or potentially tenable based on recent discoveries.
Regarding document production, the Court found that BNS had mostly complied with previous orders.
However, Curtis was entitled to additional disclosures related to his privacy and defamation claims,
particularly documents provided to third parties like Canaccede Financial Group. The Court denied
further disclosure requests where Curtis failed to prove document existence or relevance. Ultimately, due
to the divided success of the motion, no costs were awarded to either party.

Evans v. Teamsters Local Union No. 31, 2008 SCC 20 (CanLII), [2008] 1 SCR 661
In the Supreme Court of Canada case Evans v. Teamsters Local Union No. 31, Donald Evans, a long-time
union business agent, was dismissed following a change in union leadership. After receiving a termination
letter, Evans, through his lawyer, proposed a settlement that would include 24 months’ notice—half in
continued employment and half as payment in lieu of notice. While discussions between legal counsel
ensued, Evans continued to receive his salary and benefits. The union later asked Evans to return to work

to serve the remainder of the 24-month notice period. Evans agreed only if the union rescinded the
original termination letter, which the union refused.
At trial, the judge found that Evans had been wrongfully dismissed and was entitled to 22 months' notice.
The judge also ruled that Evans had not failed to mitigate his damages, despite not seeking other
employment or returning to the union, because the union did not meet its high burden of proof to show
Evans had reasonable employment alternatives. However, the Yukon Court of Appeal overturned this,
concluding that Evans had unreasonably failed to mitigate his losses by not accepting the union’s offer of
re-employment under similar terms.
The Supreme Court of Canada upheld the Court of Appeal’s decision (with one dissent). The majority
held that a wrongfully dismissed employee may, in some circumstances, be required to mitigate damages
by returning to the same employer—provided there are no substantial changes in terms, no hostile
environment, and the return wouldn’t be degrading or humiliating. Since Evans' conditions of
employment remained largely unchanged and there was no clear evidence of acrimony, it was deemed
objectively unreasonable for him to reject the offer. The dissenting opinion argued that requiring an
employee to return to work after a wrongful dismissal ignores the personal nature of employment
relationships and fails to consider the subjective impact of the dismissal.

Kerfoot v. Weyerhaeuser Company Limited, 2013 BCCA 330 (CanLII)
In Kerfoot v. Weyerhaeuser Company Limited, the British Columbia Court of Appeal considered whether
Weyerhaeuser provided sufficient notice to two long-term employees, Gordon Kerfoot and Tim
Harshenin, when it sold its pulp mill to Domtar. The employees were transferred seamlessly to Domtar,
but the court held that the communications from Weyerhaeuser leading up to the sale lacked the
specificity required to qualify as legal notice of termination. Although the employees continued working
in their same positions, their employment with Weyerhaeuser was deemed to have ended without proper
notice on March 7, 2007—the date the sale was finalized. The trial judge awarded damages based on a
formula of one month of notice per year of service, as well as compensation for differences in pension
value and lost tax benefits from Weyerhaeuser’s Flexible Pension Account.
Weyerhaeuser appealed, arguing that the employees received sufficient working notice, that the seamless
transfer to Domtar mitigated any damages, and that losses related to pensions and tax benefits were either
speculative or avoidable. The Court of Appeal upheld the finding that no valid notice had been given,
emphasizing that notice must be clear and unequivocal, which was not the case here due to the conditional
and uncertain nature of the transaction. However, the Court found fault with the trial judge’s formulaic
approach to setting the notice period and reassessed it to 15 months for both respondents, based on their
roles, years of service, and age.
Regarding damages, the Court upheld awards for pension losses, particularly for Harshenin, who missed
qualifying for enhanced retirement benefits by a narrow margin due to the lack of notice. It rejected
Weyerhaeuser's claim that the employees should have mitigated by remaining employed with Domtar
beyond the notice period. However, the Court set aside the damages awarded for the loss of tax benefits
through the Flexible Pension Account, ruling such losses were not rooted in the employment contract. As

a result, Harshenin’s damages were reduced accordingly, while Kerfoot’s claim was dismissed entirely, as
he had already received bonuses from Domtar exceeding any remaining damages owed.

Ciszkowski v. Canac Kitchens, 2015 ONSC 73 (CanLII)
The case of Ciszkowski v. Canac Kitchens, 2015 ONSC 73 involves Kazimierz Ciszkowski, an 18-year
employee of Canac Kitchens, who sued his employer for wrongful dismissal, claiming constructive
dismissal after his return to work in April 2005 following heart surgery. Upon his return, his managerial
role was significantly diminished: he no longer reported to the CFO, lost supervisory responsibilities, was
excluded from meetings, and was assigned clerical duties. He viewed these unilateral changes as a
demotion. Tensions escalated due to disagreements with his new supervisor, Mr. Poonawalla, and his
refusal to perform tasks he saw as beneath his position. Canac issued multiple corrective actions citing
insubordination and workplace behavior issues. The working environment deteriorated, culminating in
Ciszkowski leaving work due to stress in January 2006 and never returning.
Ciszkowski alleged a campaign of harassment by Canac, including an incident involving a toilet seat
prank and being repeatedly asked to provide doctor’s notes for medical absences. He claimed these
amounted to intentional infliction of mental suffering and a toxic workplace. The trial judge, however,
found both Ciszkowski and his supervisor lacking credibility, though acknowledged that Mr. Poonawalla
fostered a culture of mistrust by encouraging employees to report on one another. While the judge did not
find evidence of targeted harassment or bad faith sufficient to warrant moral or punitive damages, he
concluded that the April 2005 job restructuring constituted constructive dismissal due to the significant
and unilateral changes to Ciszkowski’s role.
Ultimately, the court ruled in Ciszkowski’s favor on the issue of constructive dismissal, awarding him 12
months’ pay in lieu of notice, amounting to $53,248. However, the court denied his claims for moral
damages, intentional infliction of mental suffering, and punitive damages. The judge emphasized that
while the employer's conduct in demoting him without cause or consent was wrongful, the broader claims
of malicious conduct and harassment lacked sufficient objective evidence.

Dewey v. Cash Store Financial Services, 2010 HRTO 951 (CanLII)
In Dewey v. Cash Store Financial Services Inc., the applicant, Heather Dewey, filed a human rights
application alleging she was discriminated against by her former employer on the grounds of disability
and record of offences. Dewey claimed she was wrongfully terminated after taking a one-month medical
leave. However, in her application, she admitted that she did not believe the termination was related to
any criminal record, and the narrative of her claim contained no allegations connected to the "record of
offences" ground. The employer denied discrimination, asserting Dewey was dismissed due to poor work
performance, and requested the Human Rights Tribunal defer the matter due to an overlapping civil
proceeding Dewey had initiated for wrongful dismissal, which did not reference discrimination under the
Human Rights Code.

The Tribunal, led by Vice-Chair Ken Bhattacharjee, declined the employer’s request to defer the human
rights proceeding, finding it more fair and efficient to allow it to proceed since the human rights
application had been filed first and was further along. The Tribunal also found that Dewey’s civil claim,
while based on the same facts, did not pursue human rights remedies. Additionally, the Tribunal ordered
that the “record of offences” ground be struck from the application, as there was no factual basis or
allegations supporting it and the applicant had explicitly disavowed it.
Furthermore, the Tribunal addressed the issue of the individual respondent, Belinda Gracr, who had not
responded to the application. Dewey had provided a work address for Gracr, but Gracr no longer worked
there, and Dewey did not know her current address. The Tribunal directed Dewey to inform whether she
intended to pursue her claim against Gracr and to provide an updated address by a specified date, or else
risk having that portion of her application dismissed. The interim decision concluded with administrative
directions but left the main discrimination claim unresolved.

Hurlbut v Low & Low Limited, 2024 CanLII 28332 (ON SCSM)
In the wrongful dismissal case of Hurlbut (née Pascos) v. Low & Low Limited, the Ontario Small Claims
Court ruled in favour of the plaintiff, Michelle Hurlbut, awarding her $2,750 in damages, plus interest and
costs. The case arose after Hurlbut, a funeral director, was laid off during the COVID-19 pandemic.
During the layoff, she took another job due to financial need. The employer, John Low, then concluded
she had resigned and issued a Record of Employment to that effect. However, the court found that Hurlbut
had never resigned but had instead hoped to return once conditions improved, as clearly indicated in an
email she sent to Mr. Low expressing a desire to return to her original job.
The court rejected the employer's claim that accepting another full-time job constituted resignation,
emphasizing that unless prohibited by contract, employees are legally allowed to hold multiple jobs. The
judge found that Mr. Low acted based on an honest but mistaken belief, without clarifying the employee’s
intentions, and thus wrongfully dismissed her on November 4, 2020. The court declined to apply the
Employment Standards Act's deeming provision that would have fixed the termination date at the start of
the layoff, noting that the layoff was mutually agreed upon and the ESA provision did not apply in these
common law circumstances.
Ultimately, the court awarded damages for the differential in salary between Hurlbut’s former position
and the lower-paying interim job she took, over an 11-week reasonable notice period. The court denied
her claims for moral and punitive damages, stating that while the employer was mistaken, he did not act
in bad faith or with malice. The court also awarded $1,250 in costs to the plaintiff, noting that although
she succeeded in her claim, many of her more serious allegations against the employer were
unsubstantiated.

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