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Ontario woman, fired for asking to work remotely during COVID, awarded more than $60,000

by HR Law Canada

A woman who was fired after asking to work from home during the COVID-19 pandemic in an effort to protect her diabetic husband has been awarded more than $60,000 in damages by the Ontario Superior Court of Justice.

The worker, N.K., sued for wrongful dismissal and discrimination under the Ontario Human Rights Code. The decision, delivered by Justice Parghi, comes after her former employer, Idealogic PDS Inc., failed to appear in court, leading to a default judgment.

The case centred on N.K.’s request to work from home during the COVID-19 pandemic to protect her husband, who suffers from diabetes, a condition recognized as a disability under the Human Rights Code. Her request was denied, and she was immediately terminated by the company’s owner.

The court found that Idealogic PDS Inc. wrongfully dismissed N.K. and failed to accommodate her family circumstances, resulting in breaches of both employment and human rights laws.

Dismissal deemed wrongful

N.K., who had worked for Idealogic PDS Inc. for more than 13 years, was terminated in January 2021 after asking the owner if she could work remotely during a government-imposed stay-at-home order. Her job responsibilities were primarily computer-based, and she assured her employer that she could fulfil her duties from home. The request was made to protect her husband, who was vulnerable to COVID-19 due to his health condition.

However, the company refused her request and threatened to terminate her if she did not come to work in person. When she reiterated her need to work from home, the owner terminated her on the spot, without offering notice or severance. The court found that N.K. did not engage in any misconduct that would justify termination and that the company’s actions constituted wrongful dismissal.

“The Defendant did not have just cause for terminating the Plaintiff,” wrote Justice Parghi in the ruling. “In making the request she did, the Plaintiff did not engage in misconduct. She certainly did not engage in misconduct that gave rise to a breakdown in the employment relationship.”

Damages for wrongful dismissal

Justice Parghi awarded N.K. 14 months of pay in lieu of notice, considering her lengthy service and age. Based on her 2020 earnings of $31,696.30, she was awarded $36,979.02 in damages for wrongful dismissal.

While N.K. sought damages based on her 2018 and 2019 salary levels, the court found that her income had been reduced in 2020 due to the pandemic’s impact on her employer’s business. The court ruled that her damages should be calculated based on her 2020 earnings, had she remained employed in 2021.

Human rights violation

The court also ruled that her dismissal was tied to her husband’s disability, a breach of section 12 of the Ontario Human Rights Code. This section prohibits discrimination based on a person’s relationship with an individual who has a disability.

Justice Parghi found that N.K.’s request to work from home was directly related to her husband’s health condition, which put him at greater risk during the pandemic. “The Defendant knew that her wish to work from home was due to her husband’s disability. I therefore find that she was terminated due to her relationship with a disabled individual,” Parghi stated.

The judge further clarified that there was no need to prove any malicious intent from the employer, as the Code focuses on the impact of the discriminatory conduct rather than the intent behind it. The court awarded N.K. $15,000 for the breach of the Code, recognizing the emotional harm caused by her dismissal, including “hurt feelings, humiliation, loss of dignity and self-respect.”

Additional aggravated damages

In addition to the damages for wrongful dismissal and the Human Rights Code violation, N.K. was awarded $3,000 in aggravated damages.

The court found that the employer acted in bad faith during the dismissal, describing the owner’s actions as “motivated by malice and high-handed.” However, Justice Parghi noted that the damages under the Code had already addressed much of the emotional impact, reducing the need for a higher award in this category.

Delayed employment insurance

The court also addressed an issue with N.K.’s Record of Employment (ROE), which incorrectly stated that she had “quit” her job. This error caused a 10-month delay in processing her Employment Insurance benefits, leading to financial stress and inconvenience.

The court awarded her an additional $1,000 in damages for this inconvenience, citing case law that supports such compensation in similar situations.

Costs awarded

N.K. was awarded $6,494.59 in legal costs, inclusive of HST and disbursements. Although her legal team sought costs on a substantial indemnity basis, Justice Parghi awarded costs on a partial indemnity basis, stating that there was no justification for the higher standard in this case.

In total, N.K. was awarded $62,473.61 in damages, costs, and disbursements. Idealogic PDS Inc. has 30 days to pay the amount.

For more information, see Khanom v. Idealogic PDS Inc., 2024 ONSC 5131 (CanLII).

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