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ARTICLE · 18 MARCH 2015

Supreme Court Rules On Employee Suspensions And Constructive Dismissal

On Friday morning the Supreme Court of Canada released its decision in Potter v. New Brunswick Legal Aid Services Commission.

CanadaEmployment and HR

On Friday morning the Supreme Court of Canada released its decision in Potter v. New Brunswick Legal Aid Services Commission. The decision related to whether and in what circumstances an employee is deemed to be constructively dismissed when suspended with pay. Overturning the decision of the New Brunswick Court of Appeal, which upheld the lower court decision, the Supreme Court unanimously determined (with concurring reasons) that David Potter was constructively dismissed from his position as the Executive Director of Legal Aid.

Mr. Potter was initially hired for a seven-year term. Roughly half way into his seven-year term, Mr. Potter and the Board of Directors had entered into discussions to negotiate a buyout of his contract. However, before negotiations were completed, Mr. Potter went on sick leave. Shortly before he was to return from sick leave, the Board informed him that he "ought not" to return to the workplace. Upon seeking clarification, Mr. Potter

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