Case information

Employment law — Abusive manner of termination — Defamation — Unjust dismissal — Compensation in lieu of reasonable notice — What information may an employer provide when publicly announcing the termination of an employee following a workplace investigation without tarnishing the employee’s right to the safeguard of their honour, dignity and reputation and their right to privacy? — What are the legal limits of an employer’s ability to terminate without notice a long-standing employee with an unblemished record based on a one-time isolated personal event unrelated to their duties and devoid of any impact upon their employer, colleagues and clients?

Case summaries are prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch). Please note that summaries are not provided to the Judges of the Court. They are placed on the Court file and website for information purposes only.

(SEALING ORDER)

The applicant, Alfonso Graceffa, was a senior executive of Ivanhoe Cambridge Inc. (“Ivanhoe”) and Otéra Capital Holding Inc. (“Otéra”), subsidiaries of the Caisse de dépôt et placement du Québec (“Caisse”). His employment record was unblemished. However, following an internal investigation prompted by allegations involving Mr. Graceffa, he was dismissed without notice by Ivanhoe and Otéra. Mr. Graceffa instituted proceedings against the respondents — Ivanhoe, Otéra and the Caisse — claiming that his employment had been terminated without cause and seeking compensation in lieu of reasonable notice. He further alleged that his dismissal had been conducted in an abusive manner and that he had been defamed by statements made by the respondents at the time of his termination. The trial judge allowed Mr. Graceffa’s application in part. He found that Mr. Graceffa was not entitled to compensation in lieu of notice, as the respondents had established a serious reason justifying his dismissal. However, the judge held that he was entitled to his 2019 special bonus and 2018 annual bonus, totaling $768,000, which Ivanhoe was ordered to pay. The judge further concluded that the manner of Mr. Graceffa’s dismissal was not abusive and that he had not been defamed by the respondents. Mr. Graceffa appealed the judgment, and Ivanhoe filed a cross-appeal regarding his entitlement to the bonuses. The Court of Appeal of Quebec, finding that neither party had identified any reviewable error, dismissed both the appeal and the cross-appeal.