constructive dismissal

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When we meet with employers regarding a needed change or a tough new situation at work, we often find that mention of constructive dismissal can really catch employers off guard. When it comes to constructive dismissal, there’s no termination meeting or official decision by the employer, but the law can still treat the situation as if the employee was fired.

Substantial changes to a job, or a work environment that becomes so bad, the employee feels they have no reasonable choice but to leave, can trigger a constructive dismissal. Ultimately, constructive dismissal creates the same obligations for the employer as a termination, including paying termination pay, severance, and possibly damages to the employee. Continue Reading Oops, You Might’ve Fired Them: A Constructive Dismissal Reality Check

Unlimited Vacation sounds great in theory – employees take time when they need it, the administrative burden of ‘counting days’ is alleviated, the ‘use it or lose it’ drama disappears,  and employers are able to avoid the “helicopter parenting” style of monitoring an employee’s vacation entitlements. 

The Unlimited Vacation perk has become increasingly popular with the rise of burnout recognition, a greater understanding of the value of ‘mental health days’,  and a less rigid take on the typical 9 to 5. It’s trendy too: In 2024, 26% of tech companies offered Unlimited Vacation (versus 15% total market)1

Before you start deleting any vacation request forms from your HR drive, consider this: in Ontario (and across Canada), Unlimited Vacation policies may create more problems than they solve, especially if they’re not drafted carefully or maintained properly. Continue Reading Unlimited Vacation: Dream or Drama?

The threat, uncertainty and financial hardship of U.S. tariffs are causing significant disruption for Canadian businesses – shrinking profit margins, reducing demand, and forcing difficult staffing decisions.

If your business is facing economic uncertainty due to tariffs, temporary layoffs might seem like a reasonable solution. However, employment laws in Canada impose strict rules on layoffs, and missteps can result in unintended liability.Continue Reading Tariff Turmoil? Temporary Layoff Tips for Canadian Employers

The recently enacted Working for Workers Six Act, 2024 (Bill 229) introduces numerous legislative updates that Ontario employers need to understand and incorporate into their workplace practices.

Bill 229 was passed into law in December 2024, meaning several provisions are already in effect, while others are set to roll out in 2025. Here, we break down the key components of Bill 229 and their practical implications for Ontario employers.Continue Reading Bill 229, Working for Workers Six Act: What Ontario Employers Need to Know

We’ve all heard of the magical work-life balance in Sweden, where companies have been experimenting with shorter workweeks for years. One attempt in Gothenburg saw municipal workers shift to a six-hour workday without losing pay. The results? Increased productivity, happier employees, and fewer sick days.

While not every business has embraced the change permanently, the experiment fueled the global conversation about reducing work hours. The four-day workweek has become one of the hottest workplace trends as organizations around the globe explore new ways to boost productivity, employee well-being, and retention. Continue Reading Working Hard or Hardly Working? Making the Four-Day Workweek Work for You

How to Avoid Constructive DismissalsNow, more than ever, businesses are modifying and evolving in order to keep up with changes in social and industry trends, work environments, office locations, and the economy.  Generally, your business evolving is a good thing and means you’re doing well but major changes to the organization of your business can also lead to constructive dismissals. As an employer, you need to be aware of how to make changes at work, without forcing employees out. 

What is Constructive Dismissal? 

It’s no secret that hiring and firing are pretty common and well-known practices while running a business. What is less talked about are constructive dismissals. A constructive dismissal happens when a unilateral change made to an employee’s contract or overall employment relationship is so significant that it basically breaks the contract.  A change leading to a constructive dismissal claim must be fundamental and done without the employee’s agreement, leaving the employee feeling like their only option is to resign and sue for breaking that contract. 
Continue Reading How to Avoid Constructive Dismissals

In the recent Court of Appeal decision in Kosteckyj v. Paramount Resources Ltd. 2022 ABCA 230 (CanLII), the court considered the possibility that specific timelines could be imposed on employees for voicing dissatisfaction with unwelcome changes to the terms of their employment if they want to subsequently argue that they’ve been constructively dismissed.

What Typically Triggers a Constructive Dismissal Claim?

Constructive dismissal arguments often follow unilateral changes made to an employment agreement by the employer.  When an employee alleges a constructive dismissal after a change, they’re essentially saying that the change cuts so deeply to the core of the employment relationship that they’ve been forced to leave: “I’m quitting, but you made me! … and by the way, you have to now compensate me as if you’d fired me.”
Continue Reading How Long Can an Employee Dispute Compensation Changes?

Is remote work ending?
Photo by Good Faces on Unsplash

Is remote work ending? Many of our employer clients are making plans for a return to in-person work. Likely many employees have mixed feelings about a return to the office. Sure, not wearing real pants has been nice, but many miss the in-person social aspects of work, and would maybe welcome a little bit of separation from their families, annoying cat, or their neighbour’s lawnmower. Today we will discuss some return-to-work issues.

Can I Require My Employees to Return to Work?

Employers can definitely tell their employees that they are required to return to the office. How strong a stance employers want to take on this will depend and some flexibility will likely be warranted. 
Continue Reading The End of Remote Work?

IDEL and Constructive Dismissal
Photo by Melody Ayres-Griffiths on Unsplash

The Ontario Superior Court has ruled once again on the right of an employee to assert a constructive dismissal in light of the O. Reg. 228/20: Infectious Disease Emergency Leave (“the Regulation”) under the Employment Standards Act, 2000 (ESA). In the latest decision, the court ruled that the Regulation does not preclude an employee from asserting a common law constructive dismissal. 

As discussed in previous posts, under the Regulation neither a reduction in the employees hours of work or wages constitute a constructive dismissal under the ESA if they occur during the COVID-19 Period. The COVID-19 Period keeps changing on us, but it currently runs from March 1, 2020 to September 25, 2021.  There have been conflicting decisions about whether the Regulation also removes an employee’s right to assert a constructive dismissal under the common law. 
Continue Reading Another Ruling on the IDEL and the Employee’s Right to Pursue Common Law Constructive Dismissal