Case analysis

1.   Potter v. New Brunswick Legal Aid Services Commission, 2015 SCC 10

Suspension with pay may constitute “constructive dismissal”

Mr. Potter was the Executive Director of the New Brunswick Legal Aid Services Commission. While the parties were negotiating a buyout of Mr. Potter’s contract, Mr. Potter commenced a sick leave. In response, the employer wrote to Mr. Potter to advise him not to return to work until he was provided further direction. In the meanwhile, Mr. Potter was suspended with pay, and his powers were delegated to someone else. Mr. Potter sued for constructive dismissal.

The Supreme Court of Canada agreed with Mr. Potter, finding that Mr. Potter had been constructively dismissed, “[i]n light of the indefinite duration of the suspension, of the fact that the Commission failed to act in good faith insofar as it withheld valid business reasons from Mr. Potter, and of the Commission’s concealed intention to have Mr. Potter terminated.”