Ontario employees who lose their job are required to take reasonable steps to replace their lost income. Severance is intended to bridge the gap while an individual is out of work, and there is a legal requirement that, where possible, a person take all reasonable steps to stem the flow of their losses.
In Parmar v. Tribe Management Inc., (2022 BCSC 1675) Justice MacNaughton ruled that a mandatory vaccine policy introduced in October of 2021 was reasonable and that on an objective basis a reasonable employee would not have considered the policy as a substantial imposition of an essential term of the agreement.
Many employers assume that they can demote an employee as a disciplinary measure and are shocked to learn that doing so might constitute a constructive dismissal. In fact, it will be a constructive dismissal in most cases.