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mitigation

Ontario Court of Appeal addresses the issue of what constitutes mitigation income

The Court addressed the issue of what constitutes mitigation income for purposes of assessing any required deductions from common law entitlements.

 

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Important decision regarding mitigation of damages following termination

The Ontario Court of Appeal, in Brake v. PJ-M2R Restaurant Inc., recently clarified the law of mitigation.

 

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Make whole remedies and good faith crucial to mitigation

A recent decision of the BC Court of Appeal provides a cautionary tale for BC employers seeking to remedy a potential wrongful dismissal.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: legislative amendments that expanded the access to Employment Insurance benefits; a case where a former employee was awarded six months’ compensation in lieu of notice after she had declined a severance package offered to her by the employer; further recent updates regarding the Accessibility for Ontarians with Disabilities Act.

 

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The latest: When does a constructively dismissed employee have to stay with their employer?

In 2008, the Supreme Court of Canada issued Evans v Teamsters Local Union No. 31, [2008] 1 S.C.R. 661, one of the leading decisions on constructive dismissal in Canada. In that case, the Court held that a constructively dismissed employee must mitigate their damages by continuing to work with the dismissing employer if a reasonable person would accept this mitigation opportunity. In determining whether it is reasonable to mitigate by working for the dismissing employer, the Court stated that one should consider the following factors:

 

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Three of the most popular articles this week on HRinfodesk

Three popular articles this week on HRinfodesk deal with an employer’s miscalculation of the employee’s notice period; how an Alberta employer paid the price for failing to accommodate an employee’s disabilities; and Ontario’s new mandatory occupational health and safety training.

 

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Working notice: A refresher

Most of the time when employers look to terminate an employee they opt for pay in lieu of notice. Yet pay in lieu of notice can be costly, it can discourage mitigation and it may hurt productivity (if a suitable replacement has yet to be found). An often overlooked approach is providing working notice that satisfies both statutory and common law obligations.

 

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Appeal court finds compensation for loss during notice period trumps shareholders’ agreement

A recent decision by the British Columbia Court of Appeal highlights the importance of carefully crafting written employment agreements whenever shares are issued as part of employee compensation.

 

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Employer paid no notice or severance when it terminated employee of 36 years without cause

The Ontario Superior Court of Justice just decided that an employer terminated a 65-year-old long-term employee without the proper amount of notice or severance. As a result, the employer had to pay hefty damages, interest and costs award

 

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Court of Appeal confirms entitlement to disability benefits

Most employers are familiar with the potential legal exposure to damages that arises from dismissing an employee without cause. The damages are normally quantified by the value of compensation the dismissed employee would have received during the agreed-upon or court-ordered period of reasonable notice. However, most employers would not contemplate the possibility of having to pay the dismissed employee the value of disability benefits he or she would have received under a disability insurance policy until age 65…

 

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Employers still liable for bonuses during notice period

The recent decision of the British Columbia Supreme Court in Szczypiorkowski v. Coast Capital Savings Credit Union is not particularly groundbreaking, but it does affirm a number of important points for employers…

 

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Constructive dismissal part 2: everything has its limits

Constructive dismissal, while still a source of concern for employers, is likely less of a threat than it is sometimes thought of. Employees placed in potential constructive dismissal suits must be very careful, or else they may find they have very limited recovery. However, an employer in British Columbia has attempted to push the weaknesses of constructive dismissal to the extreme. In fact it appears to have tried to push the concept farther than it can reasonably bear.

 

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Court again confirms no upper limit with damages for non-management and low-level workers

The case of Olivares v. Canac Kitchens (another in the long list of wrongful dismissal accounts against Canac Kitchens) arose from the termination of a 24-year employee. The employee was an uneducated shipping supervisor with poor English, who oversaw a team of loaders and coordinators. His salary was approximately $93,000, including overtime pay and benefits. He spent his entire Canadian working life with the company, communicating almost exclusively in Spanish. In May 2008, Canac Kitchens ceased its manufacturing operations and, as a result, Olivares was left looking for work…

 

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Employees that wish to withdraw resignations: what to do?

Employers should never accept resignations from employees that are upset. It simply casts a “wider net of possible financial exposure” if things turn nasty. In other words, judges or juries probably won’t sympathize with the issue of resignation acceptance if the employee is genuinely and legitimately upset (not because someone misplaced their red stapler).

 

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