When Does Workplace Mistreatment Become a Legal Claim?
Workplace mistreatment can take many forms, from harassment and bullying to significant changes in an employee’s role, compensation or working conditions. But not every unfair workplace decision is legally considered harassment, and not every difficult workplace constitutes grounds for a claim.
For employees dealing with serious workplace problems, the important question is not simply whether their employer has treated them unfairly. It is whether the employer has breached a legal obligation or the employment agreement, and what remedy may be available as a result of the breach.
At Gionet Fairley Wood LLP, we help employees assess disputes involving wrongful dismissal, constructive dismissal, workplace harassment, unpaid compensation, and other serious employment issues. The facts of each case are critical, particularly when an employer's conduct has fundamentally changed the employment relationship.
What Is Considered Workplace Mistreatment in Ontario?
Mistreatment in the workplace can include many things. A manager may be unreasonable, an employee may be targeted because of a personality conflict, or workplace decisions may be driven by favouritism or business interests. These circumstances can create legal issues under employment law.
For example, an employer that substantially changes an employee's job, fails to pay compensation that is owed, or permits serious harassment to continue may face legal consequences even when the conduct is not connected to a protected characteristic.
When Can a Toxic Workplace Lead to Constructive Dismissal?
An employee does not have to be formally fired for an employer to face a wrongful dismissal claim.
Constructive dismissal can arise when an employer makes a fundamental change to the employment relationship without the employee's agreement. It can also arise when the employer's conduct demonstrates that it no longer intends to be bound by the employment agreement.
A difficult or unpleasant workplace is not automatically constructive dismissal. The question is whether the employer's conduct, considered objectively and in the circumstances of the employment relationship, amounts to a fundamental breach.
Repeated humiliation, serious bullying, or a failure to address significant workplace problems may become relevant where the overall circumstances make continued employment unreasonable.
Whichever issue has arisen, the timing of a resignation is important. An employee who believes they have been constructively dismissed should obtain legal advice before leaving their job. Resigning without understanding the legal consequences can affect a potential claim.
Can an Employer Cut Your Pay or Change Your Job?
An employer generally cannot make a substantial unilateral change to a fundamental term of an employment agreement and assume the employee must accept it. A significant salary reduction, major changes in job responsibilities, demotion, or substantial relocation may raise issues of constructive dismissal or breach of contract.
The size of the change is only part of the analysis. The employment agreement, the employee's position, the circumstances surrounding the change, and the effect on the employment relationship can all be relevant.
An employer may have legitimate business reasons for restructuring a position, but those reasons do not necessarily give the employer the right to change fundamental contractual terms without consequences.
What Happens When an Employer Fails to Address Workplace Mistreatment?
Ontario employers have specific obligations when workplace harassment is reported or comes to their attention. Under the Occupational Health and Safety Act (the “Act”), an employer must ensure that an investigation appropriate in the circumstances is conducted when it comes to incidents and complaints of workplace harassment. The investigation must be objective, and the affected worker must be provided with the results and any corrective action taken.
Workplace harassment under the Act is not limited to conduct based on a protected human rights ground. It can include bullying, isolating behaviour, and other conduct that meets the statutory definition.
A failure to investigate does not automatically mean an employee is entitled to damages. However, where serious harassment continues after an employer has been put on notice, the employer's response may become important evidence in a broader employment claim.
For example, an employee who reports repeated harassment and is then subjected to worsening working conditions, disciplinary action, or dismissal may have grounds to challenge the employer's conduct. The circumstances surrounding the complaint and the employer's response become important parts of the case.
Can an Employer Refuse to Pay a Bonus or Commission?
Compensation disputes can lead to employment litigation, particularly when substantial bonuses, commissions, or other contractual payments are involved.
An employment agreement may specify when compensation is earned, how it is calculated and what conditions apply. Disputes can arise when an employer changes the calculation, refuses to pay compensation that has already been earned, or attempts to recover compensation that was previously paid.
Calling a bonus "discretionary" does not necessarily end the analysis. The wording of the employment agreement, the employer's past practices, and the circumstances surrounding the payment can all be relevant.
For senior employees and executives, these disputes can involve significant amounts and complex compensation structures. A civil claim may be appropriate when the amount at issue or the contractual issues involved cannot be resolved through the employment relationship.
What If Your Treatment Changes After You Complain?
The timing of an employer's actions can provide important evidence in an employment dispute.
An employee may raise concerns about harassment, compensation, or workplace conduct and then experience a sudden change in their duties, performance reviews, compensation, or employment status.
That change does not automatically prove retaliation. Employers can make legitimate business decisions and address genuine performance concerns. But when a significant change closely follows a workplace complaint, the circumstances may warrant closer examination.
This can become particularly important if the employer later relies on performance concerns to justify discipline or dismissal. Documents created before and after the complaint may help establish whether the employer's explanation is consistent with the history of the employment relationship.
What Evidence Can Help in a Workplace Dispute?
Workplace mistreatment disputes often turn on the evidence available to establish what happened.
Employment agreements, compensation records, performance reviews, emails, and other written communications can help establish the terms of employment and the employer's conduct. A contemporaneous record of significant incidents can also be useful, particularly when it identifies dates, what occurred, and who was present.
Where workplace conduct has caused a significant health impact, medical documentation may also become relevant. Employees should be cautious about sharing more medical information than is necessary and should obtain legal advice about what documentation may be relevant to their claim.
The purpose of keeping records is not to document every unpleasant interaction. It is to preserve evidence that may establish the conduct, the employer's knowledge, the employee's response, and the impact on the employment relationship.
When To Speak to an Employment Litigation Lawyer
It may be time to obtain legal advice when workplace mistreatment has moved beyond ordinary conflict and is affecting the fundamental terms of employment.
A significant reduction in compensation, a major change in duties, serious harassment, unpaid compensation, an inadequate response to workplace complaints, or dismissal following a workplace dispute can all raise legal issues.
An employee who believes they have been constructively dismissed should not assume that resigning is the only option. Someone who has been dismissed should also understand their potential claims before accepting a severance offer or signing a release.
At Gionet Fairley Wood LLP, we help employees assess whether workplace mistreatment has crossed the line into a legal dispute. We examine the employment agreement, the employer's conduct, the circumstances surrounding the dispute, and the damages that may be available.
We represent clients with workplace harassment claims throughout Barrie, Simcoe County, Muskoka, and Ontario. If you have questions or think you may have a claim, give us a call at 705-468-1088 or send a request to schedule a consultation through our website and we will be happy to take a look at it for you.
The information provided in this blog is for general informational purposes only and should not be construed as legal advice. If you have legal questions, we strongly advise you to contact us.