Restructured out of job

Demotion or change in job title or responsibilities can constitute constructive dismissal
|Canadian Employment Law Today

Repko Meerman began working in the Edmonton office of Scaffold Connection Corporation in August 1997. In September 1997 he accepted an offer to work as Scaffold’s branch manager in Halifax. By September 1999 he was promoted to regional manager for the Maritimes.

He was responsible for overseeing an important project in Nova Scotia with Irving Oil. His remuneration was comprised of both salary and commissions. During his work on the Irving project Mr. Scaffold’s commission earnings increased substantially.

Unfortunately in 1999 Scaffold ran into serious financial difficulties. In December 1999 Scaffold made an application under the Companies’ Creditors Arrangement Act (CCAA) and underwent many changes and restructuring including the employee commission structure. As a result of the CCAA application the contract with Irving Oil was renegotiated and an accountant with KPMG was appointed as the monitor.