HRM 2600 Lecture Notes - Lecture 13: Wrongful Dismissal, Fundamental Breach, The Employer

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Constructive dismissal: when an employer commits a fundamental breach of contract, such as by unilaterally changing a key term of the contract, the employee can treat the breach as a termination. An important rule of contract law is mutual consideration. This means that both parties would be benefitting mutually i. e. fair pay and good job. The employer or employee can terminate the employment contract by. An employer may dismiss a non-union employee without notice if they have committed a serious breach of contract like violence. An employee may file a wrongful dismissal suit alleging a breach of contract. An employer has the right to lay off workers for economic reasons. Collective agreements require just cause and it can be challenged through grievance. (just cause occurs when an employee commits a serious offence that requires immediate termination without notice) Labour arbitrator can either impose a different penalty or reinstate dismissed employees.

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