Asked by Angie Harper on Jul 02, 2024

For the past seven years, Hudson has worked as vice-president in charge of personnel (a non-union position) for Mountain Enterprises Ltd. As part of a corporate reorganization, the directors of the company decided to downgrade Hudson's position to manager of personnel. Hudson is very upset at this change and consequently refuses to go along with it. Because of his refusal, the company dismisses him immediately without any notice or pay in lieu thereof. If Hudson sues for wrongful dismissal, which one of the following statements indicates the most likely outcome of the case?

A) The company will win because non-union employees are always subject to dismissal without notice, because there is no collective agreement.
B) The company will win because Hudson's refusal constituted cause.
C) The company will win because they dismissed him, rather than saying he was "fired."
D) Hudson will win because the company breached the employment contract and he does not have to accept that breach.
E) Hudson will win because an employer owes its employees a job, unless the employee is convicted of a theft.

Wrongful Dismissal

Termination of an employee's contract of employment in breach of the contract or without proper legal reason.

Corporate Reorganization

The restructuring of a company’s business operations, such as through mergers, acquisitions, or bankruptcy proceedings, often to increase efficiency or profitability.

Employment Contract

A formal agreement between an employer and an employee outlining the terms and conditions of employment, including duties, compensation, and duration.

  • Attain insight into the legal impacts of illegitimate discharge and the scenarios in which it could occur.
  • Differentiate between constructive and actual dismissal and the legal consequences of each.