The issue of good faith and bad faith in contractual relations is distinct from the issue of calculating damages due to the failure of the employer to provide reasonable notice of termination. There was no need in this case to determine whether or not the employer acted in bad faith as the same outcome can be determined without the need to determine the bad faith issue.
Two recent Small Claims Court cases demonstrate the courts' willingness to sanction employers for improper just cause allegations. These cases highlight the fact that employers need to be cautious in asserting just cause.
It has been about eight years since the Supreme Court of Canada decision in Honda Canada v Keays, which dramatically altered the law with respect to damages relating to bad faith conduct in the course of dismissal. Is the topic still relevant? A recent Ontario decision confirms that it is.