As the festive season approaches, Canadian employers are being urged to reconsider any plans for workforce reductions. Leading employment lawyer Howard Levitt, writing with Jeffrey Vandespyker, argues that terminating employees before or during the holidays is a decision fraught with legal peril and human cost.
The Heightened Vulnerability of Holiday Dismissals
Employment in Canada is not viewed by the courts as a simple commercial transaction. The Supreme Court of Canada has explicitly recognized work as a central anchor in a person's life, providing financial security, psychological identity, and social connection. A termination severs this anchor, creating immediate vulnerability.
This vulnerability is magnified during the holiday season, a period marked by increased family obligations, significant expenses, and heightened emotional expectations. Levitt emphasizes that while employers might dismiss sentimentality, Canadian courts do not. The timing of a dismissal is a critical factor judges consider when evaluating an employer's conduct.
The Legal Duty of Good Faith and Its Consequences
Canadian law imposes a clear duty on employers to act in good faith during the dismissal process. Conduct deemed untruthful, misleading, humiliating, or unduly insensitive can lead to courts awarding aggravated, or "bad faith," damages on top of standard termination pay.
Choosing to fire someone during the holidays is routinely seen as evidence of such insensitivity. Levitt notes that courts recognize employers are fully aware of the seasonal pressures employees face. Proceeding with a termination regardless is viewed as "throwing gasoline on an already smouldering fire," significantly increasing potential liability.
Court Cases Highlight the Real-World Cost
Levitt points to specific legal precedents where holiday timing played a decisive role:
In Black v. Robinson, a 61-year-old employee with long service was terminated just before the holidays. The employer compounded this by withholding three weeks of wages. The court had little difficulty finding the employer acted in bad faith, with the holiday timing a key aggravating factor.
The case of Horner v. 897469 Ontario Inc. involved an employee facing workplace harassment who was told to take time off before the new year. Her termination letter was then shoved through her back door during the Christmas holidays. The court condemned the act as "cowardly," explicitly citing the holiday timing.
A Prudent Approach for Employers
Beyond the legal risk, Levitt argues that avoiding holiday terminations is simply better business practice. It is better for remaining employee morale, protects the company's reputation, and is ultimately better for the bottom line by avoiding costly litigation and damage awards.
Waiting until after the new year is presented not just as a humane choice, but as a core component of smart legal strategy and prudent risk management. Employers are advised to plan any necessary workforce changes for a time that does not exploit a period of recognized personal and financial vulnerability.
The message from Canadian employment law is clear: the holidays are for celebration, not for termination meetings. Employers who ignore this guidance do so at their own significant financial and legal peril.
