Canada: Unfair/ Wrongful Dismissal

In Birnbaum v. Dr. Chan, 2026 ONSC 2009, the Ontario Superior Court dismissed an action for wrongful dismissal and human rights damages brought by a former long-service employee against Dr. Victoria Chan (Dr. Chan) and her Respirology and Sleep Disorder Medical Clinic (the Clinic), concluding that the Clinic had after-acquired cause for termination due to the employee’s well-documented history of unauthorized, improper usage of the Clinic’s electronic medical record database.

As part of severance agreements and/or wrongful dismissal settlements, employers frequently include mitigation and clawback provisions to prevent former employees from receiving double compensation following reemployment.

In the wake of a workplace incident, employers often face two difficult questions: is discipline required and, if so, what is the appropriate amount of discipline?