Constructive Dismissal And The Reasonable Employee

Potter v. New Brunswick Legal Aid, 2015 SCC

Employer began negotiating a buyout of the employee's contract. Before any deal was made, the employee went on sick leave. During the leave period, the employer suspended the employee with pay and delegated his powers to another employee.

At the same time, but unbeknownst to the employee, the employer prepared a letter of termination. When the employee received the notice of suspension, he requested reasons for it. After receiving none, he considered himself constructively dismissed and sued.

An employee must prove one of two branches to establish constructive dismissal:

(i) identify an express or implied contract term that has been breached and determine whether the breach is sufficiently serious to constitute constructive dismissal; or