The largest wrongful dismissal award in Canadian history was recently awarded by a jury in Prince George, British Columbia in the case of Higginson v. Babine Forest Products Ltd. The case was reported by the Prince George Citizen newspaper on July 27, 2012. The Plaintiff, Larry Higginson, had been employed by Babine Forest Products for 34 years and at the time of his dismissal worked as a manager in the electrical department of Babine's sawmill. At trial the jury awarded $809,000.00, the majority of this award was in punitive damages.
Punitive damages are not typically awarded in wrongful dismissal cases but in Higginson's case he alleged that the company management had deliberately attempted to create an unpleasant work environment at the sawmill in the hope that he would decide to leave on his own. When he didn't quit the company created false grounds to dismiss him for cause in order to avoid paying severance. In its decision the jury appeared to accept most, if not all, of Higginson's arguments in awarding approximately $236,000 in wrongful dismissal damages and $573,000 in punitive damages.
Following the trial, the company appealed the jury's decision but the parties settled the matter before the case reached the B.C. Court of Appeal. The company's appeal would likely have focused on the substantial punitive damages award. The Supreme Court of Canada has said that punitive damages should only be awarded when normal compensatory damages do not achieve the purposes of punishment, deterrence, and denunciation required by the circumstances of the case.
The case of Honda v. Keays decided by the Supreme Court in 2008 has been interpreted as restricting the availability of punitive damages in employment law cases.
In follow up interviews regarding the case the Lawyers for Higginson noted that prior to his dismissal the company asked Higginson to sign a document relinquishing his rights to severance and excluded him from meetings that he was normally required to attend as part of his duties. Because Higginson asked for a trial with a jury, there is no detailed decision from the trial judge explaining the precise reasons for the substantial judgement. However, the size of the total award should provide caution to any employer trying to use pressure tactics to get an employee to quit in order to avoid their severance obligations.
Frequently Asked Questions
My employer has again asked that I work in a foreign country. I am concerned that this posting is unsafe. Last time I worked abroad multiple bombings took place and several governments closed their embassies. I also had my personal belongings stolen while I was in what was supposed to be a secure area. Do I have to go work in this country? If I do is my employer required to provide travel insurance in case something goes wrong?
The first thing to look at is your employment contract. Most employment contracts contain both written terms, and unwritten terms that are implied into the contract by law. The written portion of an employment contract usually mentions the benefits and insurance coverage that an employer is required to provide and it may also mention work locations and travel.
Unless travel insurance is covered in the original contract, or has since been agreed to by the employer, an employer generally cannot be forced to provide travel insurance. Also, most travel insurance policies will not cover all of the risks you’ve outlined. However, the failure to mention travel or relocation in a contract may prevent an employer from requiring that an employee work in a foreign country. Whether an employer can make such a request, without it being specifically mentioned in the contract, depends primarily on the nature of the work and if foreign travel to that country was expected or foreseeable when the employee was hired or promoted into their current position.
If an employee has a legitimate fear for their safety they may be able to argue that a travel request from their employer is not consistent with their contract. The context of the employment and the country involved are important considerations. For example it could be implied into many contracts that travel to the United States is acceptable, whereas travel to parts of Afghanistan is not. It is always best to review your contract, check your facts, and consult with a Lawyer before making any demands of your employer.
I have been off work since May 2016 and have been trying to obtain short-term disability insurance since then. My doctor has provided me with three sick notes since then and at our last appointment she told me not to work. However, my application for short-term disability insurance has been denied. I’ve given the disability insurer the notes from my doctor and I’ve gone through the appeal process but have been denied again. My employer is now asking when I will return and I’ve booked an appointment with my doctor to see what she thinks. What should I do?
It is not uncommon for disability insurers to deny an initial application for short-term disability benefits. Often the reason cited for the denial is a lack of medical evidence of a disability. If the only documentation you have provided to the insurer are sick notes from your doctor it is usually of assistance to obtain further medical records from your doctor including something documenting your diagnosis. Often, after receiving such additional documentation an insurer will approve an application for disability benefits. If you continue to be denied benefits, it is likely time to consult with legal counsel. Also short-term disability benefits typically end within 6 months even if you are approved. Ensure you know when these benefits end and decide with your doctor whether you should be applying for long-term disability benefits if they are available to you.
With respect to returning to work you are entitled to rely on your doctor’s advice. If your doctor tells you not to work this should be documented in a doctor’s note and provided to your employer. Forcing you to return to work when your doctor says you’re sick is in breach of human rights legislation and it’s unlikely that your employer will insist on your return to work in the face of your doctor’s advice.
I have a chronic medical condition which unfortunately has become worse over time. For the last two years I have been receiving benefits through my employer’s disability insurance plan. Recently, the insurer wrote to advise me that the terms of the policy have changed and that they now require additional medical information - why is this happening and am I at risk of losing my benefits?
Most disability insurance policies provided by employers have different coverage for different periods of time. For the first two years of an employee’s disability benefits are generally provided on the basis that you cannot perform the essential duties of your existing occupation. The definition of disability changes after two years in most policies.
One of the first steps in your case is to obtain a copy of the policy from your employer. This policy will usually include a brief description of the criteria that an employee must meet to be entitled to disability benefits. In the vast majority of cases after two years of paying benefits policies will limit an employee’s entitlement to further benefits unless the employee is unable to work in any occupation to which they are reasonably suited.
Because of this change to the disability definition, insurance companies will generally review files and seek additional medical information if someone has been receiving benefits for two years. However, Ontario courts have recognized that whether an individual is able to perform any occupation depends not only on their particular disability, but also their basic skill set and educational background. In many cases insurers won’t cut off benefits once they have completed their review and have received additional medical information. However, if you and your insurer disagree about whether you are capable of returning to the workforce it may be time to contact a Lawyer.