Supreme Court of Canada weighs in on constructive dismissal

Suspension can lead to constructive dismissal, even if it’s paid

The law surrounding constructive dismissal has changed considerably over the past few years, sometimes making it difficult for employees to successfully prove an entitlement to damages based on constructive dismissal. On March 6, 2015, the Supreme Court of Canada weighed in on the issue of constructive dismissal in Potter v. New Brunswick (Legal Aid Services Commission). In Potter, Canada’s top court determined that the employee had been constructively dismissed when his employer suspended him with pay indefinitely and awarded the employee damages representing the balance of the seven-year fixed-term contract.

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