constructive dismissal

We’re pleased to share Jordan Kirkness’s article, here, on the impact to employers of Bill 47, Making Ontario Open for Business Act. The article was published in today’s edition of the Globe and Mail.

If it comes into effect in its current form, Bill 47 will reverse most of Bill 148 (the previous

The Supreme Court of Canada (“SCC“) has clarified and expanded the scope of “constructive dismissal”. In Potter v. New Brunswick Legal Aid Services Commission, the SCC held that placing an employee on paid administrative (i.e. non-disciplinary) leave can constitute constructive dismissal. The SCC determined that employers are required to act in good faith towards their employees and, unless explicitly authorized by the employment contract, employers cannot place employees on leave, even if paid, without providing legitimate business justification. Where an employer fails to do so, the suspension will be viewed as an unauthorized breach of the employment contract, amounting to “constructive dismissal” of the employee, who can then sue the former employer for compensation.
Continue Reading The Expanded Scope of Constructive Dismissal: The Supreme Court of Canada Applies the Duty of Good Faith in Contractual Relationships