New position with same salary but no defined role was a demotion: Court
An Ontario employer constructively dismissed a senior manager when it shifted him to another position with the same pay but no defined role, the Ontario Superior Court of Justice has ruled.
Harry Jodoin was hired by Nissan Canada in November 2000 as a district sales manager in Montreal. His employment contract included a provision that stated “as part of your long-term career growth, the possibility of transfers to other locations does exist.” Four years later, he was promoted to marketing representative manager and moved to Toronto, where he obtained the highest rate of program completion for Nissan in North America.
Jodoin was promoted again in 2007 and became a national fleet manager. His job title was changed in 2009 to senior manager, retail sales and sponsorships, where he managed Nissan’s advertising in both English and French, as well as oversaw Nissan’s sponsorship programs with the Canadian Football League and Cirque du Soleil. In addition, he oversaw Nissan’s participation in auto shows.
Senior manager moved to newly created position
On Dec. 22, 2010, Jodoin was told he was being moved into a new role — senior manager of vehicle participation programme (VPP). It was a new position for Nissan Canada, though it existed in the U.S. branch of the company. There was no job description, budget, long-term goals or employees to report to Jodoin, though his salary remained the same. Jodoin also had to move out of his office and into a cubicle.
Jodoin inquired about a job description but was unable to get one. In mid-January 2013, he said it would be difficult speaking to potential customers privately and quietly without an office and suggested working in a regional office nearby. He was told a spot for him would be found.
On Feb. 15, 2011, Jodoin wrote to Nissan’s president to say he had been constructively dismissed and that he preferred to have the company terminate his employment “with appropriate compensation” rather than be shifted into a job without purpose or responsibility. The director of HR for Nissan’s U.S. office responded by saying the president wasn’t satisfied with Jodoin’s performance and “believed that this reassignment would provide you with the opportunity to take advantage of your core strengths which would ultimately benefit you and the organization.” She also said the plan was for Jodoin to “develop the position and the program.”
Jodoin was surprised to hear this because he had received positive performance reviews and no indication there was any dissatisfaction with the job he was doing in his previous position. A former executive at Nissan was brought back to fill Jodoin’s old position and Jodoin felt his new position was created to move him and make room for the former executive. The former executive was hired the same day Jodoin was transferred.
No defined role, no office
Jodoin continued to press for a job description and budget, but none was forthcoming. He presented different budget scenarios, but wasn’t told there was any money for his new position. He also was only given one short-term goal of increasing sales in that area by 500 to 700 cars.
In mid-February, Jodoin received a “career vision form” that had comparative ratings — the first time he had been given ratings — which he felt were inaccurate and “an insult” to his performance in his previous role.
On March 14, 2011, Jodoin filed a claim for constructive dismissal and left Nissan. He saw the move as a demotion and a decrease in responsibility and relevance in the company.
The court found that though Jodoin’s salary remained the same after he was put in the new role, that was “the only essential element of the contract that was not changed by Nissan.” The title of senior manager, VPP was “essentially a hollow term” with no real role, said the court.
Though Jodoin’s employment contract mentioned the possibility of transfers to other locations, the new position didn’t fit within those parameters, said the court.
The court found Jodoin was demoted to a lesser position, which was supported by the fact when he left the company, he was replaced by an employee with no sales experience, even though the position was technically a sales position. This employee only worked part-time in the position and spent half of his time doing other things and, when the employee became ill, the position wasn’t filled during his absence.
The court also found the former Nissan executive who replaced Jodoin as senior manager, retail sales and sponsorships on the same day had to have been interviewed before he was told. This, combined with the lack of information or long-term goals in the new position and the loss of his office — which wouldn’t really happen in a lateral move — would make a reasonable person feel demoted, said the court.
“(Jodoin) formerly had a leadership position, a responsible, successful senior manager position, and was demoted to one with no management at all,” said the court. “It was a title without a job description, no long-term goals, no budget and no one to manage.”
Nissan was ordered to compensate Jodoin for lost salary and benefits for the nine months he was out of work after he left Nissan before he found a new job with another automobile company — a total of $102,198.33.
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