When the pandemic first began, and at various subsequent points, many Ontario employers experienced a decrease in work volume and, as a result, made the difficult decision to place their staff on temporary unpaid lay-off from work. This seemingly straightforward decision, however, has resulted for some businesses in unintended litigation. They have faced employee claims for severance on the basis that their lay-off amounted to a constructive dismissal from employment.

Employees are entitled to work in a respectful environment, free from harassment and discrimination. In circumstances where the work environment deteriorates to such an extent that it may be considered “poisonous” or “toxic”, a court will likely find that the employer’s behaviour in creating and/or condoning this environment amounted to a constructive dismissal of the affected employee.

Q&A is a recurring series on the Vey Willetts LLP blog. The aim is to provide quick answers to questions we commonly encounter in our day-to-day practice of employment law. In this edition, we focus on constructive dismissal from employment.