When does a tyrannical boss become a legal liability?

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Canadian courts have repeatedly demonstrated otherwiseLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.There is an important distinction between demanding excellence and stripping people of their dignity. One drives performance. The other creates liability. Photo by Fizkes/Getty ImagesBy Howard Levitt and Michael H. KennedySubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAfter a recent Toronto Star article outlined complaints regarding Prime Minister Mark Carney’s management style and about a difficult working environment within the Prime Minister’s Office (PMO), Canadians may reasonably have wondered: when does a demanding boss become a legal liability?The answer might surprise many employees and employers.As employment lawyers, we routinely advise executives, managers and employees operating in extraordinarily high-pressure environments. Whether a Bay Street trading floor, a corporate boardroom, a major law firm or the Prime Minister’s Office PMO, one misconception appears again and again: that being subjected to a tyrannical boss is, by itself, unlawful.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againIt is not.Canadian employment law gives employers remarkably broad authority to manage their workforce. A manager may be demanding, impatient, abrasive, blunt, difficult to please and even unpleasant. None of that is inherently illegal.Courts have repeatedly confirmed that employees are not entitled to a stress-free workplace. Not even close. Employers are permitted to set ambitious targets, impose strict accountability standards, demand long hours (subject to employment standards, maximum number of hours of work) and insist upon exceptional performance. Some of the most successful organizations in the country are built upon precisely those expectations.A difficult boss may be bad for morale. It may lead to turnover. It may even be poor leadership.But it does not automatically lead to a lawsuit.If an employee resigns solely because a supervisor is hard to satisfy, maintains exacting standards or routinely disciplines them for poor performance, that departure will generally be treated as a voluntary resignation, leaving the employee with no entitlement to severance, damages or compensation.The law changes when management crosses the line from demanding performance to attacking the individual.An employer’s right to manage is not a licence to humiliate or torment.Constructive dismissal can arise when managers routinely berate employees, scream at them, publicly embarrass them or engage in a pattern of degrading conduct. In those circumstances, the issue is no longer performance management. It becomes a fundamental breach of the relationship itself.Every employment contract contains an implied legal obligation that employees will be treated with civility, dignity and respect. When management conduct destroys that foundation, an employee may be entitled to resign and claim damages as though they had been terminated.The financial consequences can be significant.For senior employees, constructive dismissal awards frequently reach hundreds of thousands of dollars. For executives, they can be substantially higher.The risks do not stop there.Across Canada, employers are also subject to statutory obligations to provide workplaces free from harassment and violence. Occupational health and safety legislation, human rights legislation and workplace harassment rules impose legal duties that extend beyond traditional wrongful dismissal principles.Codes of conduct provide additional contractual obligations, some of which many employers impose upon themselves by borrowing codes from other companies without considering whether they ‘walk’ that particular ‘talk.’A manager who is merely tough will rarely create liability. A manager whose conduct causes documented psychological injury may.When harassment, bullying or intimidation contributes to a recognized mental health condition, employers may face human rights claims, workplace safety investigations, aggravated damages and, in some cases, substantial reputational harm.The modern workplace increasingly recognizes that psychological safety is not simply a human resources objective. It is a legal obligation.None of this means employers should lower standards. Quite the opposite.Organizations succeed because leaders demand excellence. Employees are hired to perform and managers are entitled to hold them accountable when they fall short.But there is an important distinction between demanding excellence and stripping people of their dignity.One drives performance. The other creates liability.Whatever the facts ultimately reveal about conditions inside the PMO, the broader lesson extends far beyond politics. No employer is above the law. Not a public company. Not a law firm. Not a government department. And not the office of the prime minister.Powerful organizations often assume that results excuse behaviour. Canadian courts have repeatedly demonstrated otherwise.Toughness is legal.Intensity is legal.Even a difficult personality is legal.Humiliation, harassment and conduct that causes psychological harm is not.That is where management stops and liability begins.Howard Levitt is senior partner of Levitt LLP, employment and labour lawyers with offices in Ontario, Alberta and British Columbia. He practises employment law in eight provinces and is the author of six books, including the Law of Dismissal in Canada. Michael H. Kennedy is an associate at Levitt LLP. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.