Case - EMPLOYMENT

Michelle is a partner in an accounting firm who supervises Len, a junior accountant who has worked there as an employee for 12 years and makes $80,000 per year. Len's employment contract states that he is entitled to 4 weeks termination notice. Len did the tax returns for the past 3 years for Felicia, a client of the firm. Recently Revenue Canada audited Felicia's tax returns and disallowed many of the deductions Len had calculated for her. Felicia now owes Revenue Canada $75,000 in unpaid taxes and penalties and has decided to sue the accounting firm for professional negligence. Michelle had never liked Len as he had frequently made careless errors but she had always corrected them without warning him to improve his work. A few times she had smelled alcohol on his breath and wondered if he had been drinking while at work. When Michelle found out about Felicia's lawsuit she was furious. She approached Len while he was eating lunch with some other accountants and told him in front of his co-workers that he would be transferred to their office 100 km. north of the city and that he would be working only on basic bookkeeping. Len said he couldn't work at their northern office as he had to take care of his sick mother in the city. He also said that bookkeeping is for first year accountants.Michelle said he was lucky to even have a job after all of his past mistakes, so he better adjust to the new situation or look elsewhere for employment.Len was really angry at Michelle, and while still sitting with other co-workers, faced her and screamed "I quit, but you and this firm are going to have to pay me a lot of money for these actions". Michelle just laughed and said, "We had every right to fire you anyway, but quitting is perfect. We owe you nothing either way."

Discuss the legal rights and issues of the accounting firm and Len.