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Court offers rule clarity in dismissal cases

Thursday, March 19, 2015 @ 8:00 PM | By Cristin Schmitz

Employers generally must have “legitimate business reasons” for administratively suspending their non-unionized workers, and should be “forthright” with employees about those reasons, the Supreme Court has ruled.

Justice Richard Wagner’s March 6 ruling, in Potter v. New Brunswick Legal Aid Services [2015] S.C.J. No. 10, is the top court’s first major decision in the law of constructive dismissal since the leading case of Farber v. Royal Trust Co. [1997] 1 S.C.R. 846. The ruling provides guidance on the two-branch Farber test for determining whether a constructive...