Handle with Care

Employers NEED to handle job transfers with care, or it'll cost you...

This article is in reference to the Wheaton v. Atlantic Kia (2025 NSLB 51)

case, where Peter Wheaton was an employee at Mike Allen Auto Group. Peter had been working at the Kia dealership for over 20 years. However, as a result of sudden health issues, he requested workplace accommodations in which he would work 3 days a week and reduce heavy lifting. After years of granting these accommodations, Kia Canada pressured the dealership to work at full operational capacity, making it difficult to fulfill workload requirements for people employed part-time. 

On September 26, 2023, the dealership informed Wheaton of a transfer located across the street. However, the conversation was not clearly presented as a finalized decision. No follow-up or formal offer was made, and Wheaton was under the impression that he had time to consider the transfer. The next time he returned to work, he was stunned to discover that his workspace and tools had been removed. He was embarrassed and felt that he had been replaced. He never returned to work and later filed a complaint under Section 23 of the Nova Scotia Labour Standards Code, alleging that he had been constructively dismissed. 

Constructive dismissal occurs when an employer makes fundamental changes to an employee’s job without consent which in turn, forces the employee to resign. These changes may include considerable reduction in pay, demotions, or relocations that substantially impacts the employees work conditions. In this case, Wheaton felt that he had been replaced and pushed out due to the lack of clarity when discussing the transfer with his managers.  

However, the Nova Scotia Labour Board found that the transfer offered to Wheaton complied with Section 72(3)(e) of the Labour Standards Code. The Board determined that the transfer was reasonable and did not significantly alter the core terms of his employment. However, the board confirmed that the transfer was not formally confirmed. Nevertheless, the Board dismissed the complaint, concluding that Wheaton had not been constructively dismissed under the law. 

 This case outlines the importance of having transparent communication with your employees and ensuring compliance with labour laws.

Open and honest communication with employees is essential when implementing changes to their roles. Clear and detailed discussions about the reasons for change and the next steps help employees feel informed and supported. In the case of Mr. Wheaton, better communication could have prevented confusion, emotional distress, and ultimately, a legal dispute. This situation highlights a critical oversight by the employer in failing to provide clarity and guidance around the proposed transfer. When workplace changes occur, it's important that employees feel secure and are encouraged to voice their concerns. The fact that Mr. Wheaton was uncertain about the timing and details of his transfer illustrates a significant gap in the employer’s communication and commitment to supporting its staff. The lack of professionalism should never be overlooked and it is important that employers are transparent with their employees. 

Despite the dealership’s poor communication, they remained compliant with provincial labour laws. Although the transfer was not communicated effectively, the dealership ensured that Mr. Wheaton’s job duties and schedule remained unchanged. The new location was directly across the street, and he was expected to perform the same tasks with the same hours. While the employer fulfilled its legal obligations, it failed to support Mr. Wheaton on a personal level—reflecting poorly on its overall professionalism and employee relations.

This case serves as a powerful reminder that effective communication is key to maintaining healthy employer-employee relationships, especially during times of change. While employers must ensure compliance with labour laws, it's equally important to provide transparency and support throughout any transition. In Mr. Wheaton's case, the lack of clarity not only caused unnecessary distress but also resulted in a legal dispute that could have been avoided with better communication. By prioritizing clear, respectful conversations, employers can foster a positive work environment and prevent costly misunderstandings.

Ultimately, treating employees with respect and providing clear guidance when changes are made is not just a legal requirement—it's a cornerstone of good business practice.

At Unlimited HRM Solutions Inc., we understand that managing employee relations requires more than just compliance—it demands clarity, empathy, and a strategic approach. The case of Wheaton v. Atlantic Kia is a clear example of how communication missteps, even when legal obligations are met, can erode trust and lead to costly disputes.

Our team specializes in helping organizations navigate sensitive employee transitions with professionalism and care. Whether it's a job transfer, accommodation request, or performance-related matter, we ensure that your leaders are equipped with the tools and language needed to communicate effectively and mitigate risk.

We provide:

• Employee Relations Guidance: Practical, real-time support in handling workplace changes, accommodations, and employee concerns.

• Manager Coaching & Communication Templates: Helping leaders have difficult conversations with confidence and compliance.

• Workplace Investigations & Conflict Resolution: Independent, impartial support to resolve issues before they escalate.

• Policy Development: Clear policies that reflect current legislation and promote fairness across your organization.

• Compliance Reviews: Ensuring your HR practices align with the latest employment laws and standards across Canada.

• Fractional HR Services: For growing businesses that need flexible, ongoing HR support without the overhead of a full-time team.

Unlimited HRM Solutions Inc. is your partner in building a compliant, compassionate, and high-performing workplace—where employees feel respected, and leaders feel supported.

Let us help you turn compliance into culture.

Sincerely,

Carmelinda Galota, CHRL

President & Principal Consultant