Difference between revisions of "Employment Law Issues (9:V)"

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If an employer has unilaterally changed a fundamental term of the employee’s employment, the employee may have been “constructively dismissed” and may be entitled to damages. See [[#C. Termination of Employment | Section V.C: Termination of Employment]]. Examples of unilateral significant changes to fundamental terms of employment include significant changes to the type of work done by an employee, significant decreases to the employee’s rate of pay, or significant changes to other working conditions.
If an employer has unilaterally changed a fundamental term of the employee’s employment, the employee may have been “constructively dismissed” and may be entitled to damages. See [[#C. Termination of Employment | Section V.C: Termination of Employment]]. Examples of unilateral significant changes to fundamental terms of employment include significant changes to the type of work done by an employee, significant decreases to the employee’s rate of pay, or significant changes to other working conditions.


=== 3. Other Contractual Claims ===
=== 3. Bonus Clause Claims ===


There are also situations during the employment relationship where an employer can breach other terms of an employment contract (other than the notice requirement). For example, an employer might fail to pay a previously agreed upon bonus to an employee. See ''Gadbois v Newcom Business Media Inc.'', 2016 ONCA 898; ''Paquette v TeraGo Networks Inc.'', 2016 ONCA 618.
If an employer failed to pay a previously agreed upon bonus to an employee, it may constitute a breach of the terms of an employment contract. In ''Matthews v. Ocean Nutrition Ltd.'', 2020 SCC 26 the Supreme Court confirmed that unless a bonus plan “unambiguously” disentitles the employee to damages for the lost bonus, the employee will receive damages. The Court set out two questions needed to be answered to determine whether bonus and other payments would be included as part of an employee’s severance. First, would the employee have been entitled to the bonus or benefit as part of their compensation during the reasonable notice period? If so, do the terms of the employment contract or bonus plan unambiguously take away or limit that common law right? See also ''Hrynkiw v. Central City Brewers & Distillers Ltd.'', 2020 BCSC 1640.


=== 4. Remedy: Court Claim ===
=== 4. Other Contractual Claims ===
 
There are also situations during the employment relationship where an employer can breach other terms of an employment contract (other than the notice requirement).
 
=== 5. Remedy: Court Claim ===


Claims for breach of contract  are addressed through civil court claims, either at Provincial Court or Supreme Court depending on the potential value of the case.   
Claims for breach of contract  are addressed through civil court claims, either at Provincial Court or Supreme Court depending on the potential value of the case.   


Suing an employer while still on working notice is a risky move, as a court can find that the act of suing an employer can amount to just cause. See [[#5. Just Cause Dismissal | Section V.C.5: Just Cause Dismissal]] for more information.
Suing an employer while still on working notice is a risky move, as a court can find that suing an employer can amount to just cause for dismissal. Just cause means that the employer had justification to dismiss the employee without notice or severance.. See [[#5. Just Cause Dismissal | Section V.C.5: Just Cause Dismissal]] for more information.


There is conflicting case law on whether an employer would have just cause to dismiss an employee who sues the employer while still employed. As a result, prior to suing an employer while the claimant employee is still working or on a period of notice, claimants should carefully research the law and compare the current law to the employee’s particular circumstances.   
There is conflicting case law on whether an employer would have just cause to dismiss an employee who sues the employer while still employed. As a result, prior to suing an employer while the claimant employee is still working or on a period of notice, claimants should carefully research the law and compare the current law to the employee’s particular circumstances.