Loblaw case highlights why employers should consider legal risks along with best practices in moving employees
When relocation packages go sideways, the fallout can be costly — not just in severance dollars but in litigation, morale and reputation.
A recent Ontario decision involving a Loblaw manager shows how quickly a seemingly straightforward move can become a legal flashpoint when housing and settlement expectations diverge.
In that case, the employee had moved from Winnipeg to Ottawa at the company’s request and was terminated before closing on a new home; his effort to reopen a severance deal after his house purchase collapsed was rejected by the court, which enforced the original settlement.
For employers, the Loblaw case is a reminder that relocation touches multiple risk points at once: constructive dismissal, contract wording, financial incentives, and the way negotiations are documented.
“Relocation is a headache — you shouldn't do it lightly,” says Brandon O’Riordan, vice-president of Bader Law in Oakville, Ont.
Ideally, the more notice given to employees, the better, given the potential upheaval involved with a major relocation — but there could be a morale problem with “dead men walking,” says O’Riordan.
In addition, many employees may look for another job well ahead of the relocation, leaving the employer with few people there to help with the transition, he says.
“There's a variety of ways to address this problem. It...
[OSEN=Kim Nayeon Reporter] Ms. A, who is under suspicion of illegal medical practices due to the 'injection aunt' controversy involving broadcaster Park Na-rae, expressed her grievance. On the 24t...