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.
The first issue in Filice for the Court of Appeal was whether the without pay suspension constituted constructive dismissal. The Court first cited the two-branch test set out by the Supreme Court of Canada in Potter v. New Brunswick Legal Aid Services Commission (2015).
Wal-Mart was found to have breached its duty as it was trying to find a new position for Ms. Galea. I don’t know if this case will turn out to be an outlier, but in the meantime employers should be very careful when dealing with an employee who is between jobs within the organization.