Employers should be aware of the difference between bad feelings from termination and bad-faith termination
In its 2008 decision in Honda Canada Inc. v. Keays, which built on its earlier decision in Wallace v. United Grain Growers Ltd., the Supreme Court of Canada offered some guiding principles for assessing and identifying whether an employer has discharged its duty of good faith upon termination of an employee. An employer fails to discharge its duty of good faith where, during the course of dismissal, the employer fails to be open, reasonable, truthful and forthright with the employee. An employer fails to discharge its duty where it acts in an unfair manner by being misleading or unduly insensitive.
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