What is the impact of demotion and reduction of support on a reporting relationship?

Ontario, Canada


The following excerpt is from Chapman v. Bank of Nova Scotia, 2007 CanLII 18732 (ON SC):

In Grace v. Reader’s Digest Assn. (Canada) Ltd.[9], the plaintiff was demoted and changes were made to his reporting relationship, responsibility and support. All of those changes were held to be fundamental and to go to the root of the contract.

In Alpert v. Les Carreaux Ramca Ltee[10], the employer unilaterally imposed a cap on the bonus of the plaintiff where there had never been one previously.

In Dibbin v. Canada Trust Co.[11], the plaintiff’s job was reclassified to a lower position and his salary was frozen, or “red circled”, until the lower job position salaries caught up with his original salary.

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