Suspension equals constructive dismissal

Progressive discipline scheme sunk by store’s decision to suspend employee without pay
|Canadian Employment Law Today


Progressive discipline and corrective action policies are an effective tool in ensuring employees are given a chance to improve performance before being terminated for cause. But a single misstep by an employer during such an action can sink the program and lead to a successful claim for damages.

A recent decision by the Saskatchewan Court of Queen’s Bench shows how one mistake can lead to a significant damage award and underlines the fact that a suspension without pay can lead to a finding of constructive dismissal.