By Stephen Dugandzic
Case Summary:
In Osmani v Universal Structural Restorations Ltd., 2022 ONSC 6979, the Ontario Superior Court found that the plaintiff, Mr. Osmani, had been constructively dismissed after enduring repeated workplace harassment and abuse from his supervisor, which the employer failed to address despite multiple complaints. The court held that the employer’s failure to act created an intolerable work environment and constituted a breach of the duty to provide a safe and respectful workplace. As a result, Osmani was awarded damages for constructive dismissal, as well as aggravated damages for the mental distress caused by the employer’s bad faith conduct, and punitive damages to denounce the employer’s malicious and high-handed treatment. The case highlights the courts’ willingness to hold employers accountable not only for wrongful dismissal but also for tolerating or failing to prevent harassment, reinforcing the importance of maintaining fair and respectful workplace practices.
Facts:
Mr. Osmani worked for Universal Structural Restorations Ltd. as a construction worker. During his employment, he was subjected to repeated harassment, bullying, and verbal abuse by his supervisor. Despite reporting the harassment to management, the employer did nothing meaningful to address the situation. Eventually, Osmani could no longer tolerate the toxic environment and felt forced to stop working, which the court considered a constructive dismissal.
Issues:
1. Whether Osmani had been constructively dismissed.
2. Whether the employer’s conduct warranted aggravated and punitive damages.
3. Whether the employer was vicariously liable for the supervisor’s harassment.
Decision:
The Ontario Superior Court found in favor of Mr. Osmani.
• The court ruled that Osmani had been constructively dismissed because the workplace became intolerable due to the harassment, and the employer failed to intervene.
• The employer was held vicariously liable for the supervisor’s actions, as the harassment happened in the course of employment and the employer had ignored repeated complaints.
• The court awarded aggravated damages for the mental distress caused by the employer’s bad faith handling of the situation.
• The court also imposed punitive damages to punish the employer’s egregious and high-handed conduct.
Legal Principles:
• Employers have a duty to provide a safe, harassment-free workplace.
• Constructive dismissal can occur where a hostile environment forces an employee to resign.
• When employers act in bad faith or allow abusive environments to persist, courts can award aggravated and punitive damages.
• Employers are vicariously liable for harassment committed by supervisors if the conduct occurs within the employment relationship and is left unchecked.
Significance:
This case sends a strong message that courts will hold employers accountable for failing to protect employees from harassment, and that damages will reflect not just the economic loss of losing a job, but the emotional harm caused by a toxic work environment.
*Always seek legal advice. The above is for information purposes only.
Stephen Dugandzic received his Juris Doctor degree from the University of Alberta in 2013 and is Calgary-based. He previously practised with Bennett Jones LLP and Taylor Janis LLP before founding YYC Employment Law Group in 2018.