In the recent case of K. v. BT Express Freight Systems, 2020 CarswellOnt 1870, the Ontario Superior Court of Justice awarded the employee damages for a cancelled employment offer. In this case, an employee was sought out by an employer, signed a contract, and left their previous position. Just a few days before they were set to start the new position, they were emailed that the job offer was being cancelled.
The court stated that: “A valid employment contract creates an employment relationship even before any work begins. An employee is entitled to reasonable notice for breach of that contract, and may sue for damages if appropriate notice is not given…”
Job Offer Withdrawn Days Before the Start of the New Position
The employee was working as an import supervisor when a manager at the company found their resume on a job search website and offered them a position with the company. The position was enticing: $80,000/year compared to the $50,000 they had been making at the time of the offer. The employee accepted and informed their then-employer that they would be moving on. Days before the new position was set to start, the employer emailed that they were “terminating/withdrawing” the job offer. The employee tried to return to their previous position, but it was too late — their replacement had already been hired.
Employer Owes Damages for the Cancelled Contract
The Judge easily found that the would-be employer owed the employee some amount for the cancelled contract. The question was how much was owed for termination for a position that never began.
The Judge concluded that damages equal to three months of salary at the would-be employer was the appropriate amount. This was reduced slightly because the employee was able to find work within 10 weeks. For the last two weeks, the court gave the difference between the current salary of $52,000 and the promised salary of $80,000.
The court considered the following factors to determine the amount of damages owed: the terms of the employment contract, the existence and length (three months) of a probationary period, the worker’s age, how long they had worked at their previous position, their previous salary, that they were not looking for a new position when approached by the second company, and that after 10 weeks they were able to find a new position.
Employers Can’t Avoid the Law
Another element of this case was that the employer did not respond to the employee’s lawyer’s attempts to negotiate, tried to avoid receiving the complaint, did not file the necessary documents to defend against the accusation, and did not respond to the court process. The employer did not show up for the hearing before the court. Nevertheless, the employer was ordered to pay the damages and a portion of the employee’s legal costs.
Monkhouse Law was counsel for the employee and has experience in a wide range of cases supporting employees in wrongful termination cases.
Don’t let employers get away with unfair behaviour. If your contract was terminated unexpectedly, contact Monkhouse Law Employment Lawyers today for a free 30 minute phone consultation.