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ARTICLE · 21 FEBRUARY 2018

Careful About Aiming Too High And Asking For Too Much

Roper Greyell LLP
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After reorganizing a business, employers must take care that the terms of settlement and new employment they offer to their employees do not provide a basis for a dismissed employee to reasonably refuse to take the position in order to mitigate damages for wrongful dismissal.

CanadaEmployment and HR
Gabrielle Scorer
Gabrielle Scorer
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After reorganizing a business, employers must take care that the terms of settlement and new employment they offer to their employees do not provide a basis for a dismissed employee to reasonably refuse to take the position in order to mitigate damages for wrongful dismissal.

In Sletmoen v. Nafco Manufacturing Co. Ltd., 2017 BCSC 1726, Jon Sletmoen had worked for Nafco Manufacturing ("Manufacturing") for 18 years as a machine operator. The company then reorganized. Mr. Sletmoen was given more than 10 months of working notice of termination and presented with a proposed "Release and Settlement Agreement" (the "Settlement Agreement") which offered him employment with a newly-incorporated company (the "Employment Offer" and "Machining" respectively). He was also required to agree to a number of terms releasing Manufacturing from various potential liabilities relating to his former employment. The terms also imposed a number of conditions on Mr. Sletmoen. The terms

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