On June 15, 2010, the Ontario Superior Court of Justice ruled that Costco Wholesale Canada Ltd. wrongfully terminated the employment of Frank Naccarato, one of its return-to-vendor clerks.

Naccarato began to work for Costco in 1990, but became depressed and began sick leave in July 2002. Four years later, Costco stopped his long-term disability benefits, and ultimately terminated his employment in July 2007. Costco alleged a frustration of the employment contract, citing written comments by Naccarato’s doctor indicating that Naccarato’s return to work could not be predicted. read more »

Sandhu v. North Star Mills Ltd. - British Columbia Supreme Court – August 13, 2007

Employers need to be reasonable when ascertaining whether or not an employee will be returning to work from medical leave and in determining whether the employment contract has become frustrated due to the employee’s absence. read more »

Mulvihill v. Ottawa (City) – Ontario Court of Appeal – March 25, 2008

Committing a mistake when dismissing an employee, such as terminating the employee while they are on sick leave, does not meet the requirement of bad faith damages. read more »