Legitimate business reasons not the same as just cause

Director of underperforming facility couldn’t improve existing problems in less than 2 years
By Jeffrey R. Smith
|Canadian Employment Law Today|Last Updated: 07/06/2016

The Canadian subsidiary of a U.S. company must pay an employee who it asked to transfer from the U.S. to Canada more than $80,000 in wrongful dismissal damages.

Thomas Kurtz, 55, was a director of operations in California for Carquest, an auto parts distributor, beginning in July 2005. While in California, Carquest considered him to perform at or above company standards.

In January 2009, Carquest closed Kurtz’s distribution centre and consolidated it with others. The company offered Kurtz the director of operations position at its distribution centre in Rexdale, Ont. Kurtz accepted and moved to Canada, starting in his new position on May 1, 2009.