Question
Mary is an accountant who has worked for a small accounting firm in Toronto, Lane & Partners for 17 years. She is a manager and
Mary is an accountant who has worked for a small accounting firm in Toronto, Lane & Partners for 17 years. She is a manager and earns $84,000 per year. One of the accountants she supervises, Jack, has worked there for 8 years and makes $60,000 per year. His employment contract states that he is entitled to 6 weeks termination notice. Jack did the tax returns for the past 3 years for a very wealthy client, Rachel Chan a 75 year old lady. Recently Revenue Canada audited Rachel and has disallowed many of the deductions Jack had calculated for her. Rachel now owes Revenue Canada $100,000 in unpaid taxes and penalties. Rachel was so upset by this news that she suffered a heart attack and says she should not have to pay this money. Mary had never liked Jack as he had frequently made careless errors but she had always corrected them. A few times she had smelled alcohol on his breath and wondered if he had been drunk. When Mary found out about the Rachel Chan case she was furious. She approached Jack while he was eating lunch with some other accountants and told him that he would be transferred to their office 40 km. north of the city and that he would be working on simpler straight forward tax returns and basic bookkeeping. Jack said he couldn't work at their northern office as he was a single father and had to drive his children to school in the mornings. He said he can't waste his talents doing boring bookkeeping so they better come up with something better and in the Toronto office. Mary said he was lucky to even have a job after all of his past mistakes, so he better adjust or look elsewhere for employment. Jack was so angry he shook his fist in her face and screamed "You are darn right, I will find another job, I quit, but you and this firm are going to have to pay me a small fortune for these actions". Mary just laughed and said, "It will be great to be rid of such an incompetent drunk. We had every right to fire you anyway, but quitting is perfect. We owe you nothing either way." Lawyers were contacted. DISCUSS ALL LEGAL ISSUES THAT PERTAIN TO THE CASE.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started