Beyond the "Bare Minimum Route" with Long-Term Employees
Davis LLP Employment & Labour Bulletin
August 3, 2011
In Brito v. Canac Kitchens, Justice Echlin of the Ontario Superior Court of Justice has made clearer the lengths to which an employer may have to go to make "whole" an employee who is terminated without cause.
What's An Employer to Do?
Brito v. Canac Kitchens serves as a dramatic reminder to employers that in Ontario, at least, the Court will apply the "make whole" principle to employees terminated without cause and without common law notice to which they are entitled. When terminating an employee entitled to common law notice-particularly a long-service employee-an employer should give careful thought to offering a separation package in exchange for a full and final release from the employee. The employer should also attempt to maintain the employee on the employer's benefit plans, including disability and group life insurance, while negotiating a separation package with the employee. Finally, the employer should not assume that the risk of liability disappears simply because the terminated employee has secured alternate employment.
Karen R. Bock