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ARTICLE · 15 JULY 2016

Temporary Layoff: Constructive Dismissal If Not Provided For In The Contract

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A recent Ontario decision has clarified the law on temporary layoffs and the related impact on employee claims for constructive dismissal.

CanadaEmployment and HR
McMillan LLP
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A recent Ontario decision has clarified the law on temporary layoffs and the related impact on employee claims for constructive dismissal. An employer's temporary layoff of an employee in accordance with the Ontario Employment Standards Act, 2000 with a fixed return to work date, still resulted in a fundamental change in the employment contract, thus, constituting constructive dismissal. The Ontario Superior Court's result in Bevilacqua v Gracious Living Corporation, 2016 ONSC 4127 (Bevilacqua) highlighted the importance of employment contract's express terms in such a situation and the compensation implications of when a laid off employee refuses to return to work.

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