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Unformatted text preview: C HAPTER 21 T ERMINATING THE E MPLOYMENT R ELATIONSHIP Objectives After studying this chapter, you should have an understanding of: • how the employment relationship ends • the differences among dismissals for just cause, dismissals with notice, constructive dismissals, and wrongful dismissals • the issues arising from a wrongful dismissal suit • the components of a termination settlement Learning Outcomes • Recognize that the employer can fire the employee (page 519) • Understand that if there is just cause for the termination, the employee is not entitled to notice of termination (page 520) • Understand what constitutes just cause for dismissal (page 520) • Understand that if there is no just cause for dismissal, the employee is entitled to reasonable notice, or pay instead of notice (page 525) • Understand the factors that determine the period of notice (page 525) • Understand the type of damages that the wrongfully terminated employee may claim (page 532) • Understand how the employer can reduce the risks of wrongful dismissal actions through negotiation (page 535) • Recognize the difference in the procedure of a termination case of a unionized employee (page 536) Chapter Summary The employer may unilaterally choose to terminate the employee and end the employment relationship. If there is just cause for the dismissal, the employee is not entitled to notice or pay instead of notice. Just cause can arise from a single act by the employee that is of such a serious nature as to constitute grounds for instant dismissal. Just cause can also arise from a series of minor misdeeds that accumulate to justify dismissal after a series of warnings about the consequences of such behaviour. Even without just cause, the employer may choose to terminate the employee, but in this case, the employee is entitled to receive reasonable notice of the termination, or the amount of pay that is equivalent to the period of notice. Many terminated employees would rather get their job back, especially if they are older workers who may have trouble finding a new job, but reinstatement is not an option that the court will order. The only remedy available to the employee is money. Factors, such as age and potential difficulty in finding a new job, will be considered in determining the period of reasonable notice. Should the terminated employee be lucky enough to find suitable © 2008 BY N ELSON , A DIVISION OF T HOMSON C ANADA L TD . PART 6: EMPLOYMENT AND PROFESSIONAL RELATIONSHIPS employment immediately after the dismissal, this will eliminate the claim for notice altogether. In this case, the employee would have been financially better off to accept a settlement from the employer. If the employee fails to attempt to find a new job, the employer will raise the argument that the employee failed to mitigate his losses. A unionized employee who successfully challenges a termination is in a much different position. The unionized employee who was wrongfully terminated is entitled to get his job back. unionized employee who was wrongfully terminated is entitled to get his job back....
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- Fall '08
- Business Law, Wrongful dismissal, Thomson Canada Ltd, THOMSON CANADA LTD.