Top court sides with Honda in landmark wrongful-dismissal case
29.06.2008 22:01
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- Source: cbc.ca
The Supreme Court of Canada has overturned a lower court's decision to award a former Honda employee thousands of dollars in punitive damages for being fired without cause. In a 7-2 decision, the top court on Friday also reduced the amount of severance pay the employee received from 24 months worth of salary to 15 months. Kevin Keays, who was diagnosed with chronic fatigue syndrome a decade ago, was fired from a Honda assembly plant in Alliston, Ont., in March 2000, after he missed many days of work. He had initially been on long-term disability but returned to work after his benefits were cancelled. He then saw a company doctor and enrolled in a special provincial government program that exempted him from being disciplined for frequent absences. Fired after refusing to see company doctorHonda Canada ultimately ordered Keays to see a second company doctor. When he refused on the advice of his lawyer, Honda fired him for insubordination. There is no evidence the company's occupational medical specialist took a "hardball attitude" toward workplace absences or that Keays was being "set up" when asked to meet the doctor, the high court said in its ruling. "The employer was simply seeking to confirm Keays's disability," it said, adding Honda "should not have been faulted for relying on the advice of its medical experts." The Ontario Superior Court ruled in 2005 that Keays was fired without cause and awarded him 24 months' worth of salary in lieu of formal notice plus $500,000 in punitive damages for violating his human rights. It was the largest award of punitive damages in a Canadian employment case. Honda took the ruling to the Ontario Court of Appeal, which upheld the lower-court decision but reduced the punitive damages to $100,000. The Supreme Court erased the punitive damages award entirely with Friday's decision and reduced the severance pay portion to 15 months' salary. Justice Michel Bastarache said the original trial judge made "palpable and overriding errors" about the company's behaviour. "The employer’s conduct in dismissing Keays was in no way an egregious display of bad faith justifying an award of damages for conduct in dismissal," he wrote. Business welcomes rulingOne of the country's leading business organizations has praised the court decision and said it eased anxieties about limitations on the right to fire workers in certain situations. Ian Howcroft of Canadian Manufacturers and Exporters said the Supreme Court decision has added "clarity and certainty" to employee-management relations. “This is a clear victory for employers and demonstrated that Honda had acted properly in its dealings with Mr. Keays," said Howcroft. "This is clearly demonstrated with the Supreme Court of Canada's comments about the numerous factual errors made by the trial judge.” RelatedInternal LinksIN DEPTH: Supreme Court of CanadaTop court hears Honda wrongful dismissal caseChronic fatigue syndrome is a disease: CDCVideo Margo McDiarmid reports for CBC-TV (Runs: 3:05)Play: Real Media »Play: QuickTime »Consumer HeadlinesWinter storms, cold cause schedule slippage for Via RailAlmost half of Via Rail's passenger trains arrived late over the winter, and many were very tardy, says a new report.Canadians spending their tourism dollars at home Tourism spending in Canada rose 1.3 per cent during the first three months of this year, as Canadians' spending at home grew, while foreign spending continued to slide, Statistics Canada said Friday. U.S. authorities weigh in on stealth advertising When you see a TV character reach for an Oreo cookie, would you like to know if Nabisco paid for that to happen?Rogers announces iPhone 3G packages Voice and data plans for Apple Inc.'s much-anticipated iPhone 3G will start at $60 per month when the smartphone hits Canadian stores on July 11, Rogers Wireless said Friday.Top court sides with Honda in landmark wrongful-dismissal caseThe Supreme Court of Canada has overturned a lower court's decision to award a former Honda employee thousands of dollars in punitive damages for being fired without cause. Consumer Life FeaturesYour InterviewCarbon taxStephane Dion's plan explainedENERGYGasolinePeculiar pump price protestsTRAVELNavigating NicaraguaOnce-troubled nation becoming tourist destinationBLOGFood BytesSign of summerBLOGComm-OdditiesGripe about your neighbour on RottenNeighbor.comPeople who read this also read …
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