In this employment law wrongful dismissal action we acted for a long service manager of an insurance agency. The issue was an employment contract that she negotiated with a previous owner (now deceased) where she agreed to work 30 hours per week. Over time she worked longer hours, always doing what was required to ensure the proper operation of the agency. When the agency was sold six years later, the new owner did not inquire about her weekly hours of work. She continued working for the new owner for approximately 10 years working various hours with no complaints from the new owner. In 2006 the new owner “discovered” she was sometimes scheduling herself to work 4 day weeks rather than 5 day weeks. The new owner then unilaterally reduced her salary by 1/5. At issue was whether the plaintiff’s practice of working longer hours had become a term of her contract such that she was required to work 40 hours or 5 days per week. The trial judge determined that the plaintiff had never received any consideration for agreeing to work 40 hours per week or 5 days per week and that the original contracted 30 hour week contract was all that was legally required. The employer’s conduct in reducing the plaintiff’s salary unilaterally was held to constitute a constructive dismissal, and thus the dismissal was wrongful and damages were assessed. The employer was ordered to pay the plaintiff the salary that had been withheld plus wrongful dismissal damages based on a 15 month notice period.
