In Northern Air Charter (PR) Inc v Dunbar, 2023 ABKB 171, Justice Woolley sitting on an appeal, had to deal with an increasing common situation.
The plaintiff was laid off and was given no notice. The plaintiff hired a lawyer to send a demand letter claiming wrongful dismissal damages. The employer then turned around and offered the Plaintiff his job back but made no offer to pay him for the time off, which was 2.5 months.
This is what the judge said :
[63] The trial judge correctly summarized the Supreme Court’s decision in Evans. The rest of his decision on the issue of mitigation involved a question of mixed fact and law, and is subject to review for palpable and overriding error.
[64] The trial judge made no such error. An employee’s failure to accept an offer to return to employment, even in uncomfortable or unhappy circumstances, can constitute a failure to mitigate, as was the case in Evans. An employee is not, however, required to accept an offer of employment regardless of the circumstances: Fredrickson v Newtech Dental Laboratory Inc, 2015 BCCA 357; Oostlander v Cervus Equipment Corporation, 2022 ABQB 200.
[65] Here, Northern Air did not provide Mr. Dunbar with notice. He had been out of work for two and a half months, half the notice period to which he was entitled, as found by the trial judge. Northern Air did not offer to make Mr. Dunbar whole. As such, had Mr. Dunbar returned to work at Northern Air he would have been in the awkward position of either giving up his legal claim for notice, or being engaged in legal proceedings with his employer. The trial judge did not make a palpable or overriding error in finding that a reasonable person would not accept an offer of employment in those circumstances.
My Comments:
This case reminds us that in order for an Evans v Teamsters type tactic to succeed the employer should offer full backpay to the employee or the refusing Plaintiff will probably have the right to refuse the offer.
Another common mistake of employers is to make the recall an offer intended to end the proposed litigation. If this is done then the Plaintiff can argue that as this was a settlement offer, it is inadmissible in Court as it is contrary to the settlement privilege rule.
Thus the recall letter should be “with prejudice” and the employee should be advised that they are not required to discontinue the lawsuit in order to return to work. They should further be advised that of they refuse the recall, the employer will claim that the plaintiff has failed to mitigate his damages from that date forward.
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I. Introduction
[1] Can a without-cause dismissal be recharacterized later as for cause when the material circumstances were known to the employer before the dismissal?
[2] The answer is no.
I wish all judgements could so clear.
The relevant factors in this case were as follows:
1. The Defendants’ Board of Directors in their resolution terminating the Plaintiff ( who was the Executive Director ) said the termination was without cause.
2. The termination letter said it was without cause.
3. They paid him his minimum entitlement under the ESA which would not be payable if the was terminated was for just cause.
4. They never alleged any misconduct.
But here is the real backstory.
* A bunch of employees filed a harassment complaint against the Plaintiff .
* The Defendant hired an indépendant investigator to conduct a harassment investigation.
*The investigator did its job, interviewed the relevant parties and issued an interim report which said that the Plaintiff did not harass anyone.
* Having knowledge of this report, but apparently not relying on the report, the Board then made the decision to terminate and not allege cause .
* When the final report came out ( after the termination ) it confirmed the investigator’s conclusion that no harassment had occurred.
*The Defendant offered no evidence about why they decided to terminate the employment of the Plaintiff.
* The Defendant did not acquire any new information after the dismissal that they didn’t already have before the dismissal .
* In other words, they just thought they could change their mind, like changing your clothes.
* One of the the Board members was a lawyer but he stated that he did not know employment law. He advised the Board to hire an employment lawyer before the termination. The Board did eventually hire an employment lawyer( who presumably told them they did have just cause) but only after the actual termination.
My Comments:
This reminds me of when I practised as an advocate. Every single time one of my plaintiff clients was under investigation for alleged harassment , the result was always a dismissal. If the investigation found that the plaintiff was at fault the employer alleged just cause. If the finding of the investigator was no harassment the employer would say that they lost confidence in the employee and they would terminate without just cause.