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ARTICLE · 31 JANUARY 2012

The HR Space: Demotion Inappropriate Response To Poor Performance

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"Cause" for termination is a difficult standard to meet in Canada.

CanadaEmployment and HR
David McDonald
David McDonald
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"Cause" for termination is a difficult standard to meet in Canada. So what are your alternatives if you don't have cause? Warning, suspension, demotion, transfer? In Haddock v. Thrifty Foods (2003) Limited and Quadcam Holdings Ltd., the British Columbia Supreme Court has recently said a demotion may not be a proper response. Furthermore, a warning must be "current" to disentitle a plaintiff to damages.

The Plaintiff's Declining Performance

The plaintiff was a grocery store department manager. He had worked his way up to that position over the course of 16 years. For the first 14 years of his employment, the plaintiff was a good employee. But the plaintiff started abusing alcohol – resulting in poor performance in the last two years.

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