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.
duty of good faith
Employers must be honest, candid and forthright with employees. Failure to do can result in a judge ordering an employer to pay an employee aggravated damages.
Mr. Jonasson, a 55 year old engineer with 22 years’ service with Nexen Energy was thinking about either retiring or taking a leave of absence. He decided to request a six month leave of absence. The employer agreed to his leave request if he entered into an agreement about the company's obligations at the end of his leave.