EMPLOYERS who
substantially change an
employee’s job in a
corporate restructuring
might want to get their

cheque books ready.
A national real estate
company recently had to pay

David Farber over $350,000
for offering him a replace-
ment position with fess
responsibility, status and
prestige.

Mr. Farber had been a
successful, highly regarded,
regional sales manager for
Royal Trust.

In 1983, he supervised
400 real estate agents and
administered 21 offices
whose sales topped more
than $16,000,000.

With commissions, bene-
fits and 2 base salary of
$48,000, his income thar
year was $150,000.

He'd been with the com-
pany for 18 years and had
been promoted many times.

In 1984, as part of its
major restructuring, Royal
Trust let go of most of their
regional manager positions.

They offered Mr. Farber a
replacement position manag-
ing a branch from which
he'd been promoted out of
eight years earlier.

The worst performer in
the province, the branch had
only 20 real estate agents,
and its toral sales barely
reached $616,000 in 1983.

Jn his new job, Mr.
Farber would only reecive a
one-time reorientation
allowance of $40,000 plus
commissions, amounting to
less than half what he then
earned.

So he asked Royal Trust
to give him a more protitable
branch to manage, or at least
guarantee him a base salary
tor three more vears.

They refused. Mr. Farber
theretore didn’t show up tor
work at the new branch and
sued.

The Supreme Court of
Canada decided that the
company's conduct towards
Mr. Farber amounted to
“constructive dismissal,” a
form of wrongtul dismissal.

Constructive dismissal

occurs when an employer
substantially changes the
terms of vour job without
your agreement, causing you
to leave.

Under these circum-
stances, you haven't reaily
quit, according to the law,
but have been tired.

Fhe court said that any
reasonable person in Mr.
Farber’s situation would have
felt that he or she was being
offered a serious demotion
instead of a similar position.

In a similar case, Paul
Chapin, former chief execu-
tive officer of Kamloops
Royal Inland Hospital, won
almost $500,000, consisting
of pwo vears’ of income, ben-
efits and legal tees.

Last vear, he was offered a
lesser job as part of the
provincial government's plan
to regionalize health care.

He was told he had to
accept by noon, When he
didn’t, he was fired the next
day.

Nong the “shocking
treatment” he reecived, the
B.C, Supreme Court con-
cluded that the replacement
position represented a funda-
mental change in, Mr.
Chapin’s duties and respansi-
vilttes thar he didn’t have to
accept.

JUSTICE REFORM
PUBLIC CONSULTATION

Arcoroey Genera! Ujjal Dosanjh is undertaking justice reforms to
strengthen community partnerships and give Beicish Columbians

a stronger voice in the delivery of justice. These retorms include

the recently announced Community Accountability Programs

Iniciacive chrough which communities can deal with low-risk
offenders outside the craditional court system, and ensure chat

viccims are heard and supporced.

You are invited to attend a public consuleation with the
Attorney General on his reform plan, and on Community
Accountability Programs:

Saturday, March 21
1:00 - 4:00 p.m.

Douglas College Performing Arts Theatre

(North Building)

700 Royal Avenue, New Westminsrer

To reserve a seat please call 660-2421 and ask to be cransterred

to Victoria 356-6490. H you are outside che

Vancouver calling

arca please call 1-800-663-7867 and ask ro be transferred ro
Victoria 356-6490.

desk

+,7

BRITISH
COLUMBIA

Ministry of Attorney General

These two cases show that
a pay cut ism’s the only thing
the courts look acto deter-
mine if you've been con-
structively or wrongfully dis-
missed.

Changes affecting your
dignity, pride, and social and
emotional rewards are con-

sidered as well as changes to
vour duties and responsibili-
ties,

If you're facing a demo-
von as a result of downsizing
or organizational restructur-
ing, vou mav wish to consult
2 lawver before accepting any
change.

— This colunin is written
with the assistance of the
Nerth Vancouver law firm of
Ratcliff Company, Suite
500, 221 West Esplanade,
988-5201. The column pro-
vides information only and is
not to be relied on for leaal
advice.

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