LAW 529 Lecture Notes - Lecture 11: Walmart, Objective Test, Punitive Damages
16 Sep 2016
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To determine what the notice period or payment in lieu of notice the employer needs to look at three areas: employment contract, the termination provisions under the esa and common law. Dismissal for economic reasons is not considered just cause. Only exception where an employee does not have to give cause under the common law is: frustration of contract: A contract cannot become frustrated as a result of a foreseeable problem such as the breakdown of machinery, strike or lockout, or an employer"s economic difficulties. Frustration also occurs where: an employee goes to jail or loses professional credentials. The onus is on the employer to show that the employment contract has become frustrated. Where the employment contract does not have a termination provision thus they must resort to common law requirements to provide reasonable notice or pay in lieu if not they have wrongfully dismissed the employee.
