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ARTICLE · 10 MAY 2021

Temporary COVID-19 Layoffs Held To Be Constructive Dismissal

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Several provincial governments have enacted temporary layoff measures to address COVID-19 employment challenges. Can an employee claim constructive dismissal and damages against their...

CanadaEmployment and HR
Robert Frost-Hinz
Robert Frost-Hinz
Zoe Johansen-Hill
Zoe Johansen-Hill
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Several provincial governments have enacted temporary layoff measures to address COVID-19 employment challenges. Can an employee claim constructive dismissal and damages against their employer if they are temporarily laid off due to COVID-19? A recent decision from the Ontario Superior Court in Coutinho v Ocular Health Centre Ltd., 2021 ONSC 3076 ("Coutinho") says yes.

The Law on Constructive Dismissal

Constructive dismissal can arise in one of two ways:

  1. an employer breaches an employment contract through a unilateral change that a reasonable person in the circumstances of the employee would conclude substantially changes the essential terms of the employment contract; or

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