"Should I Stay Or Should I Go?": SCC Considers Whether Paid Administrative Suspensions Trigger Constructive Dismissals

When one thinks about constructive dismissals, unilateral pay cuts and demotions typically spring to mind. But is a paid administrative suspension in a non-unionized workplace a constructive dismissal? According to the Supreme Court of Canada, the answer to this question is "Maybe" depending upon the circumstances.

In Potter v. New Brunswick, 2015 SCC 10 (Potter), the employer unilaterally placed its Executive Director on an indefinite paid suspension while the parties negotiated a buy-out to his seven-year statutory appointment.  The employer delivered the news to Potter approximately one week prior to his scheduled return to work from an approved medical leave.  Unbeknownst to Potter, at the time the employer communicated the suspension news, the employer had, among other things, already planned to terminate his employment for just cause if a buyout was not agreed to.  Shortly after receiving the suspension news, Potter resigned from his employment and pursued