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ARTICLE · 27 APRIL 2015

Termination Without Cause Can Lead To Expedited Litigation

There are many circumstances that can arise that result in an employer terminating an employee without cause.

CanadaEmployment and HR

There are many circumstances that can arise that result in an employer terminating an employee without cause. An employee who is terminated without cause is entitled to reasonable notice of termination, or pay in lieu thereof. Often times an employer who is terminating an employee without cause will make an offer of severance (e.g. pay in lieu of notice) that is conditional upon the employee signing a release. If the employee refuses to sign the release, and the parties are unable to agree on the amount of pay in lieu of notice the employee is entitled to, litigation will often ensue.

In New Brunswick, the trend for several years has been for employees who have been terminated without cause to file an action for wrongful dismissal, followed shortly thereafter with a motion for summary judgment and advance payment of special damages. Special damages are those damages that have accrued as of the date of the hearing.

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