A Dismissal By Any Other Name

The distinction, or lack thereof, between wrongful dismissals and constructive dismissals is one which has challenged courts, lawyers, and judges.  So debatable are the differences that the Supreme Court of Canada has recently seen fit to weigh in on this subject.

In the context of assessing a terminated employee’s duty to mitigate the loss resulting from a termination of employment, the Court stated that the same principles are to be applied to both wrongfully dismissed and constructively dismissed employees. 

The key element is that in both situations the employer has ended the employment contract without reasonable notice.  Such a “constructive” termination is every bit as real as if the employee were actually informed of the dismissal and is, accordingly, accompanied by the same right to claim for damages in lieu of notice.