In Minkarious v 1788795 Ontario Inc., [Minkarious], the Ontario Superior Court of Justice (“ONSC”) confirmed an Ontario Small Claims Court decision that adversarial conduct during an employee’s medical leave can create a poisoned workplace and lead to a finding of constructive dismissal. The decision underscores the significant consequences employers face when they fail to respect boundaries or accommodate disability‑related needs.

Background

The employer discovered that the employee had not properly recorded forty site visits, resulting in those visits being unpaid, leading the employer to schedule a meeting to address the issue. Prior to the meeting occurring, the employee went on medical leave. When the employee provided the medical note, a heated conversation ensued with the employer, and they informed the employee that she was on “thin ice”.

The day after the employee began her leave, the employer appeared at the employee’s home without notice, demanding the employee return her work cellphone. The ONSC agreed with the Small Claims Court’s finding that the visit was inappropriate, leaving the employee upset and rattled from the unannounced confrontation in her home.

Following the visit to her home, the employer continued to engage in troubling conduct. This included threatening legal action if the employee slandered the employer, despite there being no reasonable cause to believe that the employee would slander the employer, demanding information about when she would return from her medical leave, and requesting that the employee attend meetings while she was still on leave. Several months into her leave, the employer further promoted another individual to a position over the employee, deeming it was necessary to do so to continue administering the work.  

The employee never returned to work following her leave. She subsequently applied for and was accepted into college several months into her leave and filed a claim alleging constructive dismissal and discrimination against the employer. In her application, the employee claimed that the employer created a toxic work environment, leaving her with no choice but to treat the employment relationship as terminated.

The Decision

The Small Claims Court found that the employer’s conduct during the medical leave contributed to a poisoned workplace and the employer constructively dismissed the employee. In doing so, the Small Claims Court awarded the employee $14,800 in damages for constructive dismissal $20,000 under the Ontario Human Rights Code [Code] for discrimination based on disability.

On appeal to the ONSC, the employer challenged these findings. It argued that the Small Claims Court erred in concluding that a constructive dismissal occurred, asserting that the employee had condoned the employer’s conduct by failing to promptly repudiate the employment agreement. The employer also submitted that the employee brought her constructive dismissal claim too late and that she had effectively abandoned her employment by applying to and accepting admission into a college program.

The ONSC dismissed the appeal and upheld the Small Claims Court’s decision that the employee was constructively dismissed. In doing so, the ONSC found that the employer’s conduct during the medical leave — the unannounced home visit and the adversarial communications — supported the finding of a poisoned work environment and that the employee was constructively dismissed. 

With respect to condonation, the ONSC dismissed the employer’s argument that the employee condoned the employer’s conduct, and in doing so, lost the right to sue for constructive dismissal. The ONSC found that the employee was off on medical leave during the time that the employer claimed she should have condoned the behaviour by and the employee never signaled that she condoned the conduct because she never returned to work after the medical leave. They also noted that the employee’s act of issuing a statement of claim was a clear sign of repudiation of the employment agreement.  

On the abandonment argument, the ONSC emphasized that abandonment requires clear and unequivocal conduct showing an intent to sever the employment relationship, which was not present, as the employee was unsure whether she would actually attend college. The ONSC noted that there was nothing wrong with an employee accepting a position in college that was due to start months later and weigh her options before advising her employer of her plans.

Takeaways for Employers

Respect Boundaries During Medical Leave: Although employers can request medical updates from employees while they are on leave, employers must avoid overstepping their boundaries and engage in intrusive conduct when an employee is on medical leave. While the employer’s conduct in Minkarius was extreme, it shows that continually disturbing an employee while they are on medical leave can lead to a finding of a poisoned work environment. That said, while employers need to be careful not to disturb employees during their medical leave, it does not prevent them from making reasonable and appropriately timed inquiries to the employee for medical updates.

Accommodation Obligations are Critical: Employers have a duty to accommodate employees with disabilities, which requires supporting an employee’s disability-related needs. In Minkarious, the employer’s conduct during the leave, including confrontational communication, pressuring for return‑to‑work timelines, and disregarding the employee’s medical limitations, reflected a failure to meaningfully participate in the accommodation process. Mismanaging the accommodation process can result in significant damages under the Code.

Condonation is Context-Specific: Whether an employee has condoned an employer’s conduct is a contextual, fact‑specific determination. An employee cannot be deemed to have condoned an employer’s conduct simply because a certain amount of time has passed. As Minkarious illustrates, an employee on medical leave cannot reasonably be expected to signal either repudiation or acceptance of the employer’s conduct, and a delay in acting does not, on its own, amount to condonation.

This blog is provided as an information service and summary of workplace legal issues.

This information is not intended as legal advice.