A long-serving tax administrator for the Osoyoos Indian Band (OIB) has been awarded 24 months’ notice and $50,000 in aggravated damages after the British Columbia Supreme Court ruled she had been constructively dismissed.
That’s because the OIB secretly appointed a replacement during her medical leave and significantly altered her job duties upon her return.
M.N.-S., who began working for the OIB in 1999 and was appointed First Nations tax administrator in 2009, alleged constructive dismissal after the Band hired a trainee for her position without her knowledge and subsequently placed that employee, A.H., permanently in her role.
Replacement appointed without consultation
The court found the OIB breached essential terms of M.N.-S.’s employment by secretly appointing A.H., who was the sister of OIB’s HR director, as tax administrator during M.N.-S.’s extended medical leave from April 2018 to July 2019. Despite normal protocols requiring departmental consultation, M.N.-S. was excluded from the hiring process, only learning about it upon returning to work.
When M.N.-S. returned, she found her former trainee, A.H., occupying her workspace. The court described OIB’s subsequent actions—assigning M.N.-S. to menial tasks at a temporary desk without access to necessary systems and demoting her from reporting directly to the Chief—to be clear indicators of constructive dismissal.
Employer’s actions deemed “dishonest” and “bad faith”
The court was sharply critical of OIB representatives, particularly J.L., controller of the OIB Development Corporation, who handled the graduated return to work (GRTW) “dishonestly,” causing significant delays and failing to accommodate M.N.-S.’s reintegration properly. J.L. repeatedly ignored professional advice from rehabilitation consultants and misrepresented her actions to the employee and consultants involved.
“J.L.’s credibility is severely lacking,” the court stated, noting her “active participation in creating the position of tax administrator trainee…without reference to [M.N.-S.].” The judge further noted J.L.’s intentional undermining of M.N.-S.’s return to work.
Emotional and psychological harm recognized
Medical evidence presented by family physician Dr. S.E. indicated that M.N.-S. suffered significant stress, anxiety, and PTSD-like symptoms due to her treatment by the employer. Dr. S.E. described her condition as deteriorating sharply during the attempted return to work, ultimately recommending she not return to the OIB.
OIB’s failure to disclose key documents
The OIB faced additional criticism for failing to disclose the official Band Council Resolution appointing A.H. as tax administrator, leading the court to infer the document was deliberately withheld because it undermined OIB’s position.
“I find that it was not disclosed because the defendant considered it inconsistent with its position…that [M.N.-S.] was not replaced,” the court noted.
Court awards damages
Given the circumstances, the court awarded M.N.-S. damages equal to 24 months’ notice, acknowledging her long tenure, specialized role, age, and limited opportunities in the First Nations tax administration field.
Additionally, citing the employer’s egregious behaviour and bad faith conduct throughout the dismissal process, the court awarded $50,000 in aggravated damages, recognizing the significant emotional and psychological harm inflicted upon M.N.-S.
The OIB’s argument that M.N.-S. failed to mitigate her damages was dismissed due to lack of evidence, further solidifying her entitlement to full compensation.
For more information, see Nunez-Shular v Osoyoos Indian Band, 2025 BCSC 491 (CanLII).
