CHAUDHRI: Botched investigation leads court to award employee $50,000 in bad faith damages

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CHAUDHRI: Botched investigation leads court to award employee $50,000 in bad faith damages
France Dernières Nouvelles,France Actualités
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Laura Rutledge, an executive director for almost 21 years, was fired for alleged cause in the spring of 2016.

The court also found the investigation started prior to informing Rutledge of it and that several meetings took place at a nearby Tim Hortons, often frequented by Markhaven employees, rather than in a confidential setting.

In finding no cause, the court awarded Rutledge $214,500, representing 22 months of wrongful dismissal damages. She was also awarded a $5,000 bonus she claimed she would have received, her lost employer RRSP contributions for the 22-month period at $8,580, value of her lost benefits being $21,450, and the pay out of accrued sick days in the amount of $9,900, and float days in the amount of $3,300.

Second, employee conduct cannot be condoned and then arbitrarily investigated at some later time. Markhaven couldn’t deny that it knew about the romantic relationship many moons before it launched an investigation into a potential conflict of interest. Lastly, employers and employees often mistakenly assume liability is limited to loss of salary only. At trial, Rutledge received damages flowing from the loss of all of her benefits as well, which amounted to almost $50,000 of the court award. This is a life changing amount of money.

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