When is a layoff not a layoff? When it is a constructive
dismissal, according to an Ontario judge. McLean v. The Rawyal Limited Partnership
(PDF) reaffirms the principle that unless incorporated as an
express or implied term of the employment contract, a layoff may be
treated as constructive dismissal – meaning the employee can
sue for pay in lieu of reasonable notice.
Facts
The employee in this case was hired as a kitchen designer by
Rawyal, a builder of custom kitchens. At her initial date of hire,
the company had an employee handbook in place that included
provision for possible layoffs. However, the employee's
contract of employment did not incorporate or refer to the employee
handbook. The employee did not receive a copy of the
handbook. She was not required to acknowledge receipt or
agreement, or acknowledge that it constituted part of her contract
of employment.
