The employee had been working as a manager at a care home since 2018 without a written employment contract. In May 2020, her husband was posted to Europe with the Canadian Forces and she requested permission to work remotely. The employer allowed her to continue working remotely, but no formal agreement was created.
For over a year, the employee worked full-time from europe without issue. However, the employer later hired an on-site manager, reduced the employee’s hours to 15 per week, reassigned her responsibilities, and then gave her an ultimatum – return to in-person work in Canada or resign. In response, the employee sued for constructive dismissal.
Accepted term of employment
The court agreed with the employee. It found that:
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Remote work had become an accepted term. After a full year of uninterrupted remote work without complaint, remote work was deemed an accepted part of the employment agreement.
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The employer’s ultimatum constituted repudiation. Forcing the employee to either return to Canada or resign fundamentally altered the employment relationship, amounting to a constructive dismissal.
The court did reduce the damages by factoring in mitigation income from a second job the employee had taken on during her remote work period. However, it rejected the employer’s claim that the employee’s side job, which was undisclosed, invalidated her employment.
Remote work arrangements
This case reinforces several important lessons for managing remote work arrangements:
