An employer constructively dismissed a worker in an asset sale to another company, but it doesn’t have to pay damages in lieu of notice because the worker failed to mitigate his losses when he declined a job offer from the buyer, the Manitoba Court of King’s Bench has ruled.
The worker was an electrical engineer who founded an electronic design and manufacturing company for the railway industry, with General Electric (GE) Transportation as one of its largest clients.
In 2016, GE Transportation acquired the company and the worker signed an employment agreement that made him GE Transportation’s senior business manager in Oakbank, Man. He also signed a retention bonus agreement that entitled him to a pro-rated bonus if his employment was terminated involuntarily for any reason other than for cause, and a restrictive covenant agreement.
