Mental health not factor in layoff of Alberta construction employee

Hoefman v LMT Enterprises Ltd.

The termination of an employee on medical leave was addressed in the recent Alberta Human Rights Commission (AHRC) decision Hoefman v. LMT Enterprises Ltd. In this case, an employee was let go as part of the downsizing of the employer’s business.

The AHRC dismissed the employee’s complaint, finding that his disability was not a factor in the termination.

Facts

• Mr. Hoefman worked as a construction superintendent for LMT Enterprises.
• Hoefman complained that over a number of years after beginning his employment with LMT in May of 2012, he was subjected to extreme and unusual mental abuse at the hands of LMT, which contributed to his mental health issues.
• In April of 2016, a meeting occurred, where LMT’s weakening financial position was discussed and all staff were informed that a number of employees would be laid off and they should seek other jobs.
• LMT maintained that Hoefman was advised on April 18, 2016 that his role as superintendent was being eliminated and he was offered the position of supervisor at an hourly rate. Hoefman never responded to this offer.
• On June 28, 2016, LMT conducted an auction to dispose of the majority of its construction equipment.
• On June 30, 2016, the parties had different versions of the facts. Hoefman’s complaint stated that LMT’s owner barged into his office and used aggressive language. LMT states that there was a meeting with Hoefman to confirm the elimination of the superintendent position.
• Hoefman’s last day of work with LMT was June 30, 2016, and he later began a medical leave.
• LMT terminated Hoefman’s employment as superintendent on August 10, 2016, while he was still on medical leave.

Commission’s Decision

The employer disputed that Hoefman had a disability under the Alberta Human Rights Act, and characterized his issues as simple stress. The medical evidence, which was all from the period after June 30, 2016, established that Hoefman had a mental disability during the relevant period between June 30 and August, 2016, invoking the protection of the Act. However, the AHRC found, based largely on evidence from a Workers Compensation Board investigation, that the allegations of workplace harassment had not been made out.

The commission went on to consider LMT’s financial situation, finding that LMT had suffered a substantial downturn in its business starting in 2015, had laid off numerous employees and sold off a significant percentage of its equipment. The commission compared unaudited financial statements from 2015 and 2016 and also a large number of records of employment indicating rolling layoffs of staff due to shortage of work.

The commission further found that Hoefman had experienced an adverse impact when his superintendent role was eliminated on August 10, 2016. However, the AHRC also found that Hoefman’s disability was not a factor in LMT’s decision.

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In testimony, Hoefman had indicated a difficulty to recall many events prior to June 30, 2016 due to his declining mental health but indicated, without hesitation, that meetings on April 18 and June 30 did not occur. As such the commission found LMT’s version of events to be more credible than Hoefman’s and that therefore, Hoefman was aware of the elimination of the superintendent role by June 30, 2016.  Further, Hoefman refused to indicate to LMT whether he was willing to accept the supervisor role, and the commission found that the dismissal on August 10, 2016 related to the superintendent position, which both parties agreed had been eliminated, leaving the possibility of a return into the supervisor position open.

Due to LMT’s financial difficulties and decision to eliminate the superintendent position, which remained constant prior to and during Hoefman’s medical leave, the commission did not accept Hoefman’s argument that his mental disability was a factor in the decision to dismiss him from the superintendent role.

Lessons for Employees

• Seek help for mental health issues: All of Hoefman’s medical evidence was from the time period subsequent to his last day of active work, and therefore no duty to accommodate his disability was triggered in the prior time period. If you have medical issues of any kind, speak to your doctor and inform your employer of any need for modified duties. Employees in Alberta receive protections through the Alberta Human Rights Act to ensure they are accommodated to the greatest extent possible. If your employer has discriminated against you because of your disability, contact an employment lawyer at Samfiru Tumarkin LLP for help.
• Don’t stay quiet if there is workplace harassment: Hoefman was unable to establish that there was any discrimination or harassment in the workplace, as it had not been raised by him or documented. Keep records or notes of any incidents that occur in the workplace, and seek help through whatever processes are available in the workplace. If your employer does not have proper avenues for reports of harassment, contact an employment lawyer at Samfiru Tumarkin LLP for help.

Lessons for Employers

• Document reasons for termination or eliminations of positions: LMT was fortunate, in defending this complaint, that it had documentation showing its declining financial position and its attempts to communicate this to employees. Without proper evidence that employees were aware of the financial issues and potential layoffs, the commission may have made a different decision.
• Terminations during a medical leave are risky: Even if there is a legitimate reason to terminate an employee who is on a medical leave, the AHRC takes these matters seriously and will almost always find a prima facie case of discrimination which an employer will be forced to defend. In this case, LMT did not finalize its relationship with Hoefman for almost seven years after terminating him from the superintendent position. Had the termination been carried out differently, the AHRC process could have been avoided. For advice on complicated terminations where an employee is on a medical leave, don’t hesitate to contact an employment lawyer at Samfiru Tumarkin LLP for help.