In Kafka v. Allstate Insurance Company of Canada, 2011 ONSC 2305 - which was issued on April 12, 2011 - the Ontario Superior Court of Justice refused to certify a propsed class action that was based on allegations of:

• constructive dismissal; and
• a claim for termination pay and/or severance under the Ontario Employment Standards Act.

The claim pertained to a general announcement letter that Allstate issued on July 24, 2007, to approximately 350 to 450 active agents (employees) in Ontario, advising that effective September 1, 2009 a revised product distribution model and agent compensation system would be implemented.  The new model was then phased in from September 1, 2007 through 2009. 

The court summarized the issue on the certification motion (application), and its decision, as follows:

At the heart of this certification motion is a debate about whether an action alleging constructive dismissal is suitable for certification. The plaintiffs argue that the question of whether Allstate constructively dismissed the Agents can be determined by looking at the "big picture". Specifically, did the systemic changes that the New Model introduced result in a constructive dismissal of all Agents? It is Allstate's position that the law of constructive dismissal requires an individualized inquiry and in this case the impact of the New Model on each agent depends upon a myriad of factors.             

In brief, it is my conclusion that this is not an appropriate case for certification. While some of the certification requirements are satisfied, the action lacks the essential element of commonality. There is no common issue capable of being determined on a class wide basis that would sufficiently advance this litigation to justify certification (paras. 6-7).

David Doorey, a professor at York University, has a thougtful review of the decision on his Workplace Law Blog.