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ARTICLE · 19 MAY 2016

Employee Not Constructively Dismissed, Employer Ordered To Pay Damages

In many instances employers will litigate against the assumption of a power imbalance, an employee viewed as the party in need of protection.

CanadaEmployment and HR

In many instances employers will litigate against the assumption of a power imbalance, an employee viewed as the party in need of protection. This is seen in the way employment contracts are interpreted in wrongful dismissal claims, and how actions and decisions of employers are scrutinized. One certainty for employers is when found to do nothing wrong, when your case has been proven, you are not liable for damages. Recently an Ontario Superior Court decision found otherwise.

In a case that left both parties scratching their heads, Justice Ray ordered common law damages against Enablence Canada Inc. despite no finding of liability.

The case, Muntean v Enablence Canada Inc., was a claim for wrongful dismissal damages by Mr. Muntean, an engineer laid-off after 6.5 years of employment. The employment relationship was based on a 3-year written contract that provided for 6-months of notice if terminated by the employer, required 3 months' notice if ended by resignation,

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