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Home News Constructive dismissal concerns for employment clients as economy slows

Constructive dismissal concerns for employment clients as economy slows

by Celia

In the midst of Canada’s challenging economic climate, employment lawyer Rich Appiah has become a sought-after advisor for both employees and employers grappling with constructive dismissals.

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Founder and principal of Appiah Law Employment + Labour Counsel, Appiah notes a growing trend where managers, facing the need for organizational restructuring, aim to redistribute duties and positions without resorting to layoffs. This process triggers a surge of inquiries regarding rights, obligations, and the definition of constructive dismissal, as employees seek clarity on their rights amidst organizational changes.

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Appiah is set to share his insights at the upcoming “Employment Law in 2024: Accommodation, Family Status, and More” Masterclass hosted by Canadian Lawyer. The event, scheduled for Thursday, February 15, will bring together legal professionals to delve into the most impactful employment law issues of 2024.

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During the panel discussion, titled “Best practices for mitigating the risk of constructive dismissal and without cause termination cases,” Appiah, along with Nancy Shapiro of Koskie Minsky LLP, Lorenzo Lisi of Aird & Berlis LLP, and David Whitten of Whitten & Lublin PC, will examine recent constructive dismissal caselaw. The focus will be on understanding how changes in the workplace environment and job responsibilities may lead to claims of constructive dismissal.

A key concern raised by Appiah is the ambiguity surrounding when a change in employment conditions becomes a constructive dismissal, with a particular emphasis on the recent surge in inquiries related to return-to-office arrangements. As the economy grapples with an ongoing slowdown, employers seeking to reduce their workforce are exploring ways to mitigate liabilities, often resulting in wrongful dismissal claims.

Appiah notes a rising trend where employers, amid economic uncertainties, terminate employees and offer severance packages below contractual or common law entitlements. This approach has led to an uptick in wrongful dismissal claims, with employees increasingly benefiting from recent caselaw that emphasizes the importance of clear communication regarding termination rights.

In a climate of economic uncertainty, Appiah anticipates that these legal nuances will play a crucial role in shaping employer-employee relationships in the foreseeable future.

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