Thursday, October 18, 2012

Ontario Employment Law: Layoffs and Deemed Terminations at Common Law

In Jadubir v. Martinrea International Inc.,  decided March 29, 2012, a tool and dye maker was laid off without recall after 15 years of service, and was never recalled to his position of employment.

For the purpose of calculating a wrongfully dismissed employee's entitlement to pay in lieu of reasonable notice in such a circumstance, Pollak J. ruled that the Employment Standards Act deems the first day of layoff to be the date of termination.

In the ruling, Pollak J. also reaffirms some other court's legal rulings, that a slight reduction in pay contained an offer of re-employment does not, alone, necessary relieve an employee of its obligation to accept the offer in mitigation of his or her damages.

- Robert Tanha, Toronto
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