Damages for wrongful dismissal are typically calculated so as to place
dismissed employees in the position they would have been in but for the breach of contract.
Not exact matches
A Tesla spokesman also revealed that most of the
employees dismissed were
in administrative and sales
positions.
But there is nothing
in the Code or
in its purpose that suggests that Parliament was granting non-unionized
employees a «right to the job» or was trying to place unionized and non-unionized
employees in the same
position: protected from being
dismissed without cause.
Thus, as with the obligation to accept that first
position that comes along, a reasonable amount of time will be extended to
dismissed employees to look for alternate employment
in their own «backyard,» before the law will expect that
employee to go looking farther afield.
a reasonable person
in the [
employee's]
position would not have considered himself to have been constructively
dismissed when the bonus on the sale of the Ellersie lands was refused.
Justice Feldman reasoned that where a wrongfully
dismissed employee is forced, because of financial considerations, to accept an inferior
position because no comparable
positions are available, the amounts earned
in that inferior
position should not be deducted from the damages award.
After reorganizing a business, employers must take care that the terms of settlement and new employment they offer to their
employees do not provide a basis for a
dismissed employee to reasonably refuse to take the
position in order to mitigate damages for wrongful dismissal.
That said, I have a certain affinity for Justice Perell's comments about the cynicism inherent
in the
position that a
dismissed employee will «sit on his hands» after receiving a large severance package.
... there is absolutely nothing wrong with the (
employee),
dismissed from a 25 - year
position at age 58, including planned attendance at the trial relating to the murder of her brother as a contextual factor
in her search for a new
position.»
In Palumbo v. Research Capital Corporation3 the Court found that the plaintiff, who held the position of head of corporate finance in Toronto, had been constructively dismissed when the employer assigned duties formerly held exclusively by the plaintiff to another employe
In Palumbo v. Research Capital Corporation3 the Court found that the plaintiff, who held the
position of head of corporate finance
in Toronto, had been constructively dismissed when the employer assigned duties formerly held exclusively by the plaintiff to another employe
in Toronto, had been constructively
dismissed when the employer assigned duties formerly held exclusively by the plaintiff to another
employee.
In these negotiations an employer will typically take the
position that: (i) the
employee was not constructively
dismissed, and (ii) even if the
employee was constructively
dismissed, applying Evans, the
employee should have remained with the employer to mitigate his or her damages.
The
dismissed employee is placed
in the unenviable
position of having to decide whether to limit their claim to $ 25,000 or claim a higher amount and risk the possibility that the judge will refuse to award costs if the damage award is ultimately less than $ 25,000.
In other words, an employer must ask a
dismissed employee to return to the workplace if it intends to take the
position that the constructively
dismissed employee failed to mitigate his or her damages by leaving the workplace.
The duty to «act reasonably»,
in seeking and accepting alternate employment, can not be a duty to take such steps as will reduce the claim against the defaulting former employer, but must be a duty to take such steps as a reasonable person
in the
dismissed employee's
position would take
in his own interests — to maintain his income and his
position in his industry, trade or profession.
This requirement places a significant hurdle
in front of any
employee considering claiming a constructive dismissal because even if the
employee is able to prove that he or she was constructively
dismissed, the court may still take the
position that the
employee should have remained working for the employer
in order to mitigate his or her damages.
Specifically, Feldman J.A. found that while a wrongfully
dismissed employee must make reasonable efforts to obtain comparable employment, if the
employee can only secure a
position that is not comparable
in either salary or responsibility, the
employee is entitled to turn it down without having the income potentially earned from that inferior
position deducted as mitigation.
To justify this
position, the employer will often point to language
in its bonus policy that requires the
dismissed employee to be «actively employed» at the time bonus is paid.
The question whether or not the
employee has acted reasonably must be judged
in relation to his own
position, and not
in relation to that of the employer who has wrongfully
dismissed him.