Question
Dennis was hired in March 2010 as vice president of operations for a software development company. At an annual salary of $125,000, he was the
Dennis was hired in March 2010 as vice president of operations for a software development company. At an annual salary of $125,000, he was the employer's highest-paid executive and had a wide range of functions. Although the employer was located in Vancouver, it agreed when Dennis was hired that, for family reasons, he could work from his home in Alberta. However, the employment agreement indicated that the employer had the right to require him to move to Vancouver in the future. In December 2010, Dennis requested vacation time to go to Mexico (where he had recently bought a house), and several times over the next six months Dennis went to Mexico for short visits, sometimes claiming one or two sick days for those periods. In mid-August 2011, after arranging Internet and phone service and thereby confirming that he could work remotely from Mexico, Dennis advised his employer that he and his family had decided to move to Mexico. The CEO said he felt betrayed by this sudden announcement and, uncertain about its tax and other implications, asked Dennis for a written proposal, which he would present to the board of directors to show how this arrangement would work. Dennis responded that he could work just as effectively from Mexico as from Alberta and his employment agreement allowed him to work from home without any country restriction. Upset by Dennis's position, the employer dismissed Dennis in late November 2011, with two months' severance pay, shortly after Dennis had finalized a major business deal for the employer. The termination letter stated that the dismissal was for the cause of relocating to another country without permission, and for dishonesty related to falsely claiming sick leave. Dennis sued for wrongful dismissal damages equivalent to 12 months' salary. He denied that the employer had just cause and argued, in the alternative, that even if it did, by delaying his termination for several months, the employer had condoned his decision to move to Mexico.
- Did the employer have just cause to dismiss Dennis? If so, did its three-and-a-half-month delay amount to condonation?
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