In a groundbreaking employment law decision, the Ontario Superior Court of Justice ruled in Byrd v. Welcome Home Children’s Residence Inc. that recalling an employee to the office after more than a year of remote work—without a prior formal agreement—constitutes constructive dismissal. The judgment establishes a legal precedent in Canada, reinforcing that remote work can become a legally implied term of employment if it continues for a substantial period without written limitation.
The case involved an employee who had worked remotely for over 12 months during and after the pandemic. Though no formal contract had locked in her remote status, the court concluded that the arrangement had become an implied term of her employment. When her employer insisted she return to the physical office, she challenged the mandate—and won.
The court determined that this abrupt change, imposed without prior agreement or consultation, represented a fundamental alteration of her working conditions. As a result, she was legally entitled to treat the employment relationship as terminated and seek compensation.
What employers need to know
This decision underscores how courts may view long-standing remote work arrangements—particularly when employers have allowed them to continue without boundaries. Even in the absence of a signed agreement, consistent remote work practices can create legal expectations. If employers wish to reserve the right to call workers back in-office, they must clearly outline those conditions upfront.
Labor lawyers in Canada and beyond are advising companies to review and formalize all remote or hybrid arrangements. As more legal disputes arise post-pandemic, clarity and transparency will be critical to managing expectations and avoiding court battles.
Broader implications
This ruling could set a precedent for other jurisdictions grappling with the evolving definition of workplace norms. With remote work now embedded in many sectors, any attempt to reverse course may not be as simple as issuing a return-to-office memo.
Employers who fail to document and communicate expectations may open themselves to costly legal challenges—not only in Canada but in any country where labor courts take implied contract terms seriously.
