In a recent Ontario Court of Appeal decision, the court upheld a $50,000 award for Aggravated damages ordered to an employee due to the manner in which they were dismissed.
The 59-year-old employee, Mr. Krmpotic, worked for the Company, Thunder Bay Electronics Limited, as a Building Maintenance Supervisor, for nearly 30 years. After sustaining work-related injuries, the employee underwent back surgery and as a result went on medical leave. Within two hours of his return to work, he was dismissed without cause.
The Company contended that the 16 months of notice they had provided was appropriate, arguing that the employee failed to mitigate his damages. However, at trial, the employee was awarded 24 months’ notice because the court found that the employee was physically incapable of working during the notice period.
When assessing the award for aggravated damages, the trial judge concluded that the Company had breached the duty of good faith a fair dealing by dismissing the employee just two hours after he returned to work after undergoing back surgery.
On appeal, the Court upheld the trial judge’s decision and dismissed the defendant’s argument that physical incapacity could only be proven through expert medical evidence.
Takeaways:
- Seek Legal Counsel: Before conducting any termination, consult with legal counsel to ensure compliance with the law and to mitigate any risks of legal action, particularly for long service employees such as in this case.
- Consider Special Circumstances: Consider all special circumstances including an employee’s medical situation or medical leave such as in this case. Terminations under these circumstances could open the door to discrimination/human rights claims in addition to the wrongful dismissal.
- Fair Treatment: Treat employees fairly and respectfully throughout the termination process. This involves providing clear explanations, offering support, and ensuring that the process is handled with dignity. Acting in bad faith could be grounds for aggravated damages for the manner in which the employee was dismissed.
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