The Ontario Labour Relations Board (ORB) recently held that a non-profit’s non—payment of wages and funding challenges amounted to constructive dismissal of one of its employees. (See Aundrea Di Giuseppe v Hospice Richmond Hill, 2015 CanLII 56255 (ON LRB)).

Background

The employee was the Executive Director at Hospice Richmond Hill (the “Employer”) for over 8 years. In 2010, the Employer started to receive long-term funding from the Trillium Foundation, and a portion of this grant funded the Executive Director position. March 2014 was the last time the Employer used this grant to pay the Executive Director. Thereafter, the Employer used its General Account to fund the Executive Director’s wages.
However, the Employer was experiencing ongoing financial difficulties. For instance, from January 2 to August 1, 2014, the Employer essentially maxed out its overdraft facilities on its General Account. In some instances, it funded its operations by exceeding its overdraft … Continue reading “Non-profit’s funding challenges lead to constructive dismissal”