New Ontario decision shows cost for employers in ignoring wrongful dismissal claims
A recent decision by the Ontario Superior Court highlights the risks of non-engagement and the importance of clear employment contracts and documentation, even with short-tenured employees.
The employer, a plumbing company in Ontario, was ordered to pay the former employee six months’ of notice equaling just over $170,000 in damages, including monthly commission, gas, salary and benefits amounting to almost $19,000 per month.
The employee’s relatively short tenure of 1.4 years, her age (47) and the nature of her role were all factors, but the employer’s lack of participation led to the default decision.
As Carson Healey, employment lawyer at Gowling, explains, employer non-participation in litigation can lead to significant financial liability, even if the employer might have had a valid defence or mitigating evidence.
“This person got common law notice, so that means that either they didn't have a contract of employment, or that they had a contract and it wasn't enforced,” she says.
The court’s decision also referenced the employer’s repeated delays and “roadblocks” during the litigation process. These tactics, such as failing to respond to communications or cancelling scheduled discoveries, can backfire on employers – not only do they frustrate the process, but they can also increase the amount the employer is ordered to pay if the case is lost.
Healey...
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