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ARTICLE · 07 MARCH 2019

Damage Control: How To Reduce Liability Following A Constructive Dismissal

An employer saved itself more than $100,000 in damages by offering to recall a long-time employee early on in the reasonable notice period following a constructive dismissal.

CanadaEmployment and HR

Bottom Line

An employer saved itself more than $100,000 in damages by offering to recall a long-time employee early on in the reasonable notice period following a constructive dismissal.

Facts: Employee sues after being temporarily laid off

The employee, David Gent, had worked for Strone Inc. for 23 years when he was temporarily laid off due to a lack of work.

Two weeks after the layoff, the employee's counsel wrote to Strone asserting that the temporary layoff was a constructive dismissal. Strone responded that there was a possibility it would recall the employee to work.

The employee's counsel immediately replied by email that the employee would not be returning. The email stated that the employee did not trust Strone, that he felt the relationship had broken down, and that he would be suing Strone.

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