The Court acknowledged that an employer may allege just cause, and later abandon that claim at any time. The Court held that it wouldn’t be appropriate to penalize an employer for changing its mind if it initially had a reasonable basis to believe it had just cause to terminate an employee. As such, it is important to investigate and document any evidence of employee misconduct, and to act accordingly.
A recent case out of Calgary, Karmel v. Calgary Jewish Academy, presents some valuable lessons for Alberta employers. This case involves a wrongful dismissal lawsuit by a terminated School Principal, Mr. Karmel, who was alleged to have been disobedient.
The Supreme Court of Canada has confirmed a new common law duty to act honestly in the performance of contractual obligations.