The decisions in Ensign and Karmel demonstrate the risk of liability for failing to be honest and forthright in the manner of termination of an employee’s employment. Employers would be well-advised to be conservative in assessing whether they have cause, assessing reasonable notice periods, carrying out the termination and avoiding bad faith and/or misrepresentation.
The question of whether medical evidence is required to prove damages in bad faith dismissals is one that courts across Canada have struggled with for some time. Welcome guidance was provided by the Supreme Court of Canada this past summer.
Back in December 2015, I wrote a blog post on a recent Human Rights Tribunal of Ontario decision in Bottiglia v. Ottawa Catholic School Board. The case concerned the ability of an employer to demand an Independent Medical Exam in circumstances where there was no clear contractual or express statutory authority.