• Recently, the Supreme Court of Canada re-emphasized an employer's duty of good faith towards an employee, even at the time of termination of employment. The court, recognizing that work is one of the most fundamental aspects in a person's life found that employers ought to be held to an obligation of good faith and fair dealing in the manner in which individuals are dismissed, and that the breach of such an obligation may lead to additional damages in favour of the terminated employee.

  The court specifically stated that "...employers ought to be candid, reasonable, honest and forthright with their employees and should refrain from engaging in conduct that is unfair or is in bad faith by being, for example, untruthful, misleading or unduly insensitive".

  This decision will no doubt affect future wrongful dismissal litigation, in particular, where employers, for example, make unfounded allegations, refuse to provide a reasonable letter of reference, or otherwise act in bad faith during the dismissal process.

• A 30 month notice award in a wrongful dismissal case recently broke the traditional ceiling for awards in an Ontario Court decision. The Chief Executive Officer employed by a Moncton hospital for 29 years was induced to leave his employment in the City of Moncton to join the Peterborough Civic Hospital in July, 1991. He performed his duties and responsibilities in a commendable manner and was later terminated in April, 1997 as part of a rationalization program where only one Chief Executive Officer was required for two hospitals in Peterborough.

  The trial judge recognized the fact that the CEO had been induced to leave an otherwise secure position with his former employer as an important factor stating that there is "a need to safeguard the employee's reliance and expectation interests in inducement situations". As a result, the CEO who was 53 years of age was awarded 30 months compensation and benefits, overshadowing what was previously thought to be a 24 month upper limit on wrongful dismissal damage awards.

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