Reference no: EM133097405

62-year old Mary French had been working as a Senior Client Relationship Manager for Pristine Life Insurance for eight years when it was acquired by We Care Corp. When she learned of We Care Corp's plan to install a new computer system post- acquisition, rather than do the training on the system, Ms. French gave her supervisor a letter indicating that she would be retiring at the end of the year.

The letter did not explain Ms. French's reasons for choosing to retire at that particular time. Yet when she tendered the letter, she explained to her supervisor that the timing of her decision was prompted by the impending move to the new computer system. When Ms. French's supervisor asked her if she was sure about her decision, she responded "not totally." At this point her supervisor told her that if she changed her mind, she could withdraw or reconsider her notice of resignation. Ms. French interpreted this to mean that she could withdraw her notice at any time, right up until the end of the year. Soon after, an announcement of her upcoming retirement was made at a staff meeting, with Ms. French's consent. We Care Corp then prepared to distribute Ms. French's caseload to other Customer Relationship Managers with the plan to eliminate her position altogether once she retired.

About three weeks later, We Care Corp announced that it would be pausing the change to the new computer system indefinitely. At that point, for the first time since presenting her retirement letter, Ms. French advised that she wished to withdraw her notice. The company, having relied on it, did not accept and indicated that it would be honouring her retirement notice. Ms. French responded by starting an action for wrongful dismissal.

The matter came before a judge. The court concluded that Ms. French did not in fact resign but, rather, that her termination was indeed a wrongful dismissal. As such, she was found to be entitled to pay in lieu of notice of termination at common law - an amount determined to be 12 months' salary.

Questions

1. Briefly explain the legal principles and/or common law liabilities that are relevant to this case.

2. Discuss the strength and/or weakness of the employer's legal position or case in this dispute. Include legal principles discussed in class in your discussion.

3. Discuss the strength and/or weakness of the employee's legal position. Include legal principles discussed in class in your discussion.

4. What should the employer do differently to mitigate future risk?