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ARTICLE · 19 AUGUST 2019

Restructuring Tools To Minimize The Risk Of Successful Constructive Dismissal Claims

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A recent Ontario Superior Court of Justice decision reminds us that a finding of constructive dismissal by a court, does not always result in an award of damages.

CanadaEmployment and HR

One of the biggest concerns for employers reorganizing in response to operational requirements is the potential for constructive dismissal claims by employees impacted by the changes.

A recent Ontario Superior Court of Justice decision reminds us that a finding of constructive dismissal by a court, does not always result in an award of damages.

In Gent v. Strone Inc.,  2019 ONSC 155 ("Gent"), Justice Pollak was required to assess whether the former employee ought to have mitigated his damage claim by accepting the employer's offer of recall following a 26 day temporary layoff.

The Court concluded that the layoff was a constructive dismissal, given the absence of any contractual entitlement on the part of the employer to impose the layoff without consent.

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