Court awards 24 months' notice, $350,000 in damages in Saskatchewan
The King's Bench for Saskatchewan recently dealt with a wrongful dismissal case where a worker argued that his employer incorrectly treated his heated statement as a resignation, despite communications and actions afterwards that suggested he was on approved leave.
The worker presented evidence of the employer's supportive messages and statements to staff indicating he was on health leave. However, four months after the incident, the employer claimed to accept what they characterized as his resignation, leading to legal proceedings.
The case examined how the employer's communications with an insurance provider affected the worker's disability benefits, and whether the employer's actions constituted termination without cause.
The worker began his career at a tractor and equipment company in 1996 as an apprentice mechanic, advancing to service manager by 2015. His role included supervising 15 people, managing fleet repairs, and customer service operations. By July 2020, his annual compensation reached $177,725.22.
Prior to the July incident, the worker faced significant challenges. He had lost his father in early 2020 and had to lay off half his workforce due to COVID-19. The employer had previously shown understanding when he experienced mental health difficulties, allowing him time off to recover.
The court noted the worker "had had a breakdown in his office on a Wednesday. [The director] became aware of the problem and advised [the worker] to take the rest of the week off."
During an unscheduled meeting on July 15, 2020, after witnessing a heated exchange, the worker stated he was "done" and left. The court found that "although he said the words and walked away, [the worker] was within minutes importuned by [the director] who cautioned him not to throw away his career."
The employer's text message following the incident stated: "You haven't let us down [worker] your [sic] the best and your welcome back anytime. Don't be ashamed it's not a big deal. Take a break and get better we want you to be happy and healthy not stressed."
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The court heard testimony that company directors held a meeting with service department employees, explaining that the worker "had not resigned but he needed some time off for his health."
The worker received short-term disability benefits of $1,000 weekly for seven weeks. When he applied for long-term disability, his claim was denied after the employer told the insurance company "there was no decline in your ability to perform your job duties leading up to your last day at work."
In November 2020, the employer sent a letter stating they accepted what they characterized as his July resignation. The court determined that "when [the employer] personnel refused to support [the worker's] application for long-term disability that was the equivalent to termination."
The court found no evidence of resignation, stating "there is no characterisation of the facts which leads to a conclusion that [the worker] resigned on July 15, 2020."
The court considered the worker's inability to seek new employment, noting he "freely admits he has not looked for work; a combination of ongoing mental health issues, combined with what can only be described as a catalogue of medical issues, has meant he is unable to seek employment."
Examining the circumstances, the court found that the worker "did not consciously leave his employment relationship with [the employer] between July 2020 and November 2020. He was focussing on his health, specifically his mental health, and trying to get his medical regime stabilized."
Based on the worker's 24 years of service, senior position, and circumstances, the court awarded 24 months' pay in lieu of notice, totaling $348,450.44 after deductions from his annual compensation of $177,725.22.
