Reference no: EM133515689

Mr. Pohl, a 50-year-old sales manager with 28 years of tenure at Hudson's Bay was offered a demotion to a "sales associate lead" with less hours, no guarantee of hours, less pay and a contract that would allow the company to terminate his employment by providing him with only minimum statutory entitlements, all on the condition that he "voluntarily resign" from his managerial position. Mr. Pohl refused the offer and was subsequently walked off the premises. He successfully sued Hudson's Bay for wrongful dismissal, and was awarded $45,000 in moral damages and $10,000 in punitive damages.

The Court's reasoning for awarding moral damages included:

 The employer's highly insensitive decision to walk Mr. Pohl out the door on termination and needlessly embarrass him;

 The "misleading" way in which the employer attempted to lock Mr. Pohl into a new, less beneficial, contract;

 Failure to pay Mr. Pohl's outstanding wages in a lump sum post termination, despite repeated demands that they do so; and

 Failure to issue a timely and correct Record of Employment, thereby increasing Mr. Pohl's "sense of exploitation, humiliation, and depression".

The Court found that the employer's conduct was effectively an attempt to take advantage of a loyal, long-term employee during a vulnerable moment, which was a breach of the employer's duty of good faith and fair dealing which warranted an award of moral damages.

Questions

1. Brief outline of the facts of the case

2. Key points of the legal arguments for the plaintiffs

3. Key points of the defence

4. Summary of the court's decision and your personal assessment

5. References