Decoding Resignation in Ontario’s Employment Law

The concept of resignation in employment law is often more complex than it appears. A pivotal case that sheds light on this intricacy is Johal v Simmons da Silva LLP, as adjudicated by the Ontario Superior Court of Justice. This case, while dating back to 2017, sets a foundational understanding of what constitutes a clear and unequivocal resignation. However, with the evolving dynamics of the modern workplace, particularly post-COVID-19, and advancements in digital communication, the parameters of what defines a resignation have become increasingly nuanced.

Johal v Simmons da Silva LLP: A Case Review

The issue of when an employee is deemed to have resigned is not always as clear as it seems.  A case from the Ontario Superior Court of Justice – Johal v Simmons da Silva LLP – is a helpful reminder of the principle that notices of resignation must be clear and unequivocal.

The case involved an employee who worked as a law clerk at a law firm for approximately 27 years.  The day following a meeting in which changes to the firm structure were announced, the clerk took her things, handed her security pass to a partner of the firm, and left. She did not return to work that day, a Friday, or the next Monday.

The firm subsequently contacted the employee via letter to accept what they deemed to be her resignation.  The employee responded via email stating that she wished to withdraw her notice of resignation.  The employer refused this request, in part on the basis that the announcement of her departure was already made.

At trial, the court ruled that the employee’s resignation was not effective.  In reaching this conclusion, the court pointed to a range of findings, including that she was a long-service employee, that she never stated clearly that she was resigning, that the employer did not take any meaningful steps to assess the genuineness of the resignation, and that the resignation took place so quickly after an announcement of major changes to the firm structure.

The court’s decision hinged on the absence of a clear and unequivocal intention to resign. This ruling underlines the need for a distinct expression of resignation, considering factors like the employee’s tenure, the immediate context of the resignation, and the employer’s response to clarify the employee’s intent.

Recent Developments in Employment Law 

Since 2017, Ontario’s legal landscape regarding employment law and the concept of resignation has seen several notable developments. These changes have further refined our understanding of what constitutes a resignation, emphasizing the need for clarity and mutual understanding between employers and employees. Below are some key developments:

• Amendments to the Employment Standards Act, 2000 (ESA)

Recent amendments to the ESA have brought more clarity to certain employment standards, potentially affecting how resignations are managed, especially in terms of notice periods and severance pay. Employers and employees need to be aware of these standards to understand their rights and obligations upon resignation.

• Case Law Developments

Several post-2017 court decisions have further clarified the nuances of what constitutes a voluntary resignation. Cases like English v Manulife Financial Corporation, 2019 ONCA 612, have emphasized that a resignation must be clear and unequivocal. In this case, the court found that a casual statement about retirement did not amount to a formal resignation.

• Impact of Constructive Dismissal Cases

 In recent years, there has been an increase in constructive dismissal cases, where changes in employment terms are deemed so significant that they constitute a dismissal. These cases often explore the thin line between resignation and dismissal, especially when employees leave due to untenable changes in their employment conditions.

Advancements in Remote Working Arrangements

 With the rise of remote and flexible working arrangements, particularly accelerated by the COVID-19 pandemic, the understanding of an employee’s resignation has become more complex. How notice of resignation is given and received in a predominantly digital communication environment requires more explicit clarity.

Increased Focus on Mental Health

 There’s a growing recognition of the impact of mental health on employment decisions. Courts and tribunals are increasingly considering the mental state and well-being of an employee at the time of resignation, which could influence the determination of whether a resignation was truly voluntary and deliberate.

Technological Influences

 The evolution of workplace technology, including the use of digital communication tools for official correspondence, has led to a reexamination of how resignations can be validly communicated. For instance, an email or a message via a company portal might be legally binding, but its validity could be contingent on the context and content.

The COVID-19 Impact

The pandemic has redefined workplace norms, introducing elements like remote work and heightened job security concerns. These changes can influence an employee’s decision-making process and, consequently, what is considered a voluntary and sober decision to resign. For instance, decisions made under duress due to job security fears or mental health strains during the pandemic may not meet the threshold of a clear resignation.

Guidelines for Employers

To navigate these complexities, employers should adopt best practices, including:

• Ensuring clear communication channels and policies around resignation.
• Training managers to identify and appropriately respond to potential resignation scenarios.
• Seeking clarification from the employee, preferably in a formal setting, to confirm their intent.

Advice for Employees

Employees are advised to:

• Clearly communicate their intention to resign, ideally in writing.
• Understand the implications of a resignation, including the loss of certain employment rights.
• Document their decision-making process, especially in ambiguous situations.

In summary, the legal framework surrounding resignation in Ontario continues to evolve, influenced by legislative changes, court rulings, and the transformation of workplace dynamics. Employers and employees must stay informed about these developments to navigate resignations effectively and in compliance with current legal standards.

If you require any guidance or assistance in termination of employment or any other employment-related legislation in Canada, please contact Sultan Lawyers, employment lawyers. You can contact us online or by telephone at (416) 214-5111.