A 25% reduction of his income did not amount to veiled dismissal

Release date: December 1st, 2011

A representative lodged a complaint under section 124 ALS, alleging that he was subjected to veiled dismissal following changes in his working conditions. In 2008, the employer cancelled the policy on discretionary premiums granted to representatives, which led to a loss of income of approximately 25% for the employee. According to the Commissioner, the employer cancelled this policy on discretionary premiums for reasons of sound management. In addition, the cancellation of this policy applied to all representatives who were entitled to it, without distinction, and so was not done with the intent to do away with the employee’s services. Since the reasons for job termination are related to the employer’s economic situation, the latter cannot be seen as a veiled dismissal. The complaint is therefore rejected. Savoie v. Groupe Vertdure Inc. (9161-7068 Québec Inc.), 2010 QCCRT 0288, DTE 2010T-466 (C.R.T.) Me Sophie Mireault.


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