Not exact matches
If the employer dismisses the
employee without giving the statutory (or contractual) minimum
notice, the employer could be sued for
breach of contract or «wrongful dismissal».
[16]... Damages for wrongful dismissal operate to compensate an
employee for the employer's
breach of the implied obligation in the employment contract to give reasonable
notice of an intention to terminate the relationship in the absence of just cause.
However, where an employer prematurely claims frustration of the employment contract and terminates the employment relationship on that basis, the
employee will be found to have been wrongfully dismissed, and will be entitled to common law reasonable
notice as well as damages for a
breach of the Code.
While an employer can still argue that damages from the loss of employment of itself should be limited to the contractual
notice period this will not protect the
employee from claiming that a contractual
breach has harmed his ability to get a new job with another employer.
After affirming the trial judge's decision that Mr. Allen was actually terminated on October 14, 2009, the Court of Appeal for British Columbia cited with approval the decision of Bowes v. Goss Power Products Ltd., 2012 ONCA 425, (canvassed by this blog in the post Fix the Duty to Mitigate) in which the Court of Appeal for Ontario held that if an employment contract provides for a fixed severance package there is no duty on the
employee to mitigate his damages, and held that as Mr. Allen's employment agreement did not impose a duty to mitigate, the trial judge properly found he was therefore entitled to the balance owing for 15 months» salary and benefits in lieu of
notice as damages for
breach of contract.
For the purposes of a wrongful dismissal action, the employment contract is
breached when the employer dismisses the
employee without reasonable
notice
Some of the most common are wrongful termination, discrimination, retaliation, violations of the Family Medical Leave Act, violations of the Fair Employment and Housing Act, Violations of the California Family Rights Act, privacy
breaches (e.g. disclosure of a medical condition to someone who did not need to know), contract
breaches, unfair bargaining and / or union and labor law disputes, unpaid wages, unpaid overtime, failure to pay minimum wage for all hours worked, failure to provide proper pay stubs, failure to pay for unused vacation days upon resignation or termination, failure to pay for all hours worked within 72 hours of quitting, failure to pay for all hours worked immediately upon leaving when the
employee gives fair
notice or resignation to the employer, failure to keep adequate records, failure to produce employment records upon request, failure to provide wage and pay information upon hiring, misclassification of an hourly
employee as an exempt
employee, misclassification of an hourly
employee as an independent contractor, work place bullying, sexual harassment, disparate impact, disparate treatment, class actions for failure to pay wages and over time, class actions for failure to provide meal and rest breaks, and class actions for failure to reimburse
employees for expenses.
There is one potential exemption to this where a PILON is not contractual but it is paid in order to avoid a wrongful dismissal, that is a dismissal in
breach of the employment contract by not providing the
employee with the right, or any,
notice.
The court analyzed testimony from several Department
employees and found that an issue was raised «as to whether the Department had constructive
notice of the tire debris and whether the Department
breached its duty to the decedent to timely identify it and remove it.»
Justice Price found that a termination clause that provided 1 - month
notice of dismissal did not
breach the ESA because at the time of termination the
employee's entitlement to
notice pursuant to the ESA was less than 1 month.
Wrongful dismissal cases often involve disputes as to whether the
employee's entitlement to
notice of dismissal is limited to that set out in the termination clause or if the former
employee is entitled to significantly greater entitlements because the termination clause has
breached the ESA and therefore the
employee is entitled to reasonable
notice of dismissal.
The Court of Appeal awarded bonus payments to Mr. Paquette, and in so doing confirmed that the basic principle in awarding damages for wrongful dismissal is that «the
employee is entitled to compensation for all losses arising from the employer's
breach of contract in failing to give proper
notice.»
It would indeed be strange that such a duty would arise where an employer has
breached his contractual obligation to his
employee, having in mind that no duty to seek other employment lies on an
employee who receives proper
notice.
However, a
breach of contract only occurs if the employer fails to provide the
employee with proper
notice of the dismissal.
The basic principle in awarding damages for wrongful dismissal is that the terminated
employee is entitled to compensation for all losses arising from the employer's
breach of contract in failing to give proper
notice.
Simply put, the
notice pay is meant to place an
employee in a similar position had there been no
breach in the employment contract.
However, on the law the court held that the judge had been right to draw an analogy with employment law and to apply the case of S G & R Valuation Service Co v Boudrais [2008] IRLR 770, HC which had held that an
employee in
breach of contract loses any «right to work» that he has, so that an employer may insist on him serving out his
notice, but not actually working, thus allowing his «neutralisation».
(2) If an employer bound by a collective agreement is or will be laying off an
employee for a period that will or may be longer than a temporary lay - off and the employer would be or might be in
breach of the collective agreement if the employer advised the
employee that his or her employment was to be terminated, the employer may provide the
employee with a written
notice of indefinite lay - off and the employer shall be deemed as of the date on which that
notice was given to have provided the
employee with a
notice of termination.
In wrongful dismissal claims the cause of action usually arises when the contract was
breached — i.e. when the employer dismissed the
employee without reasonable
notice: Jones v. Friedman, 2006 CanLII 580 (ON CA), 2006 CanLII 580 (ON C.A.), paras. 3 and 4.