Contracts can alter constructive dismissal

Appeal-court decision alters common-law definition
By Howard Levitt and Ken Krupat
|Canadian Employment Law Today

According to a recent decision of the Ontario Court of Appeal, written employment contracts can be used to significantly alter the common-law definition of constructive dismissal. Employers and employees can even include a clause in their agreements allowing the employer to significantly reduce the employee’s pay, as long as minimum notice is provided under the notice provisions of the

Employment Standards Act

. This decision approved a clause permitting a significant reduction in compensation.