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ARTICLE · 24 MARCH 2015

SCC Says Suspension With Pay Can Amount To Constructive Dismissal

Dentons Canada LLP
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A non-unionized employee on an indefinite suspension with pay successfully claimed that he was constructively dismissed by his employer and was entitled to damages for wrongful dismissal.

CanadaEmployment and HR
Matthew Curtis
Matthew Curtis
Apolone Gentles
Apolone Gentles
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A non-unionized employee on an indefinite suspension with pay successfully claimed that he was constructively dismissed by his employer and was entitled to damages for wrongful dismissal.

The case involved David Potter, an employee of the New Brunswick Legal Aid Services Commission.  When his relationship with the Commission started to deteriorate in the first half of a 7-year contract, Mr. Potter engaged in discussions with the Commission regarding a buyout of the remainder of his contract. Mr. Potter then took sick leave before the buyout negotiations were resolved and was advised during his sick leave not to return to work "until further direction". Mr. Potter's pay was continued during the suspension, but the Commission delegated Mr. Potter's powers and duties to another person and, unbeknownst to Mr. Potter at the time, the Commission wrote to the Minister of Justice recommending the revocation of Mr. Potter's appointment for cause.

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