Mental distress from work is not always compensable

Having just been denied a promotion at work, Maria Amaral was crestfallen.  As an employee of the Canadian Musical Reproduction Rights Agency for 23 years, Amaral thought that she should have been promoted to manager.  But her boss, Caroline Rioux, thought otherwise.  Shortly after the failed promotion attempt, Amaral refused to write a letter when Rioux directed her to.  She was disciplined.  Dejected, she let her attendance and performance dwindle.  Rioux continued to warn Amaral, and eventually the agency relieved her of some of her duties.  But Amaral’s absenteeism and performance worsened.  The agency placed Amaral on probation and planned for her eventual dismissal.

My job’s in jeopardy and I’m treated as a contractor. What can I do?

My employer has technically classified me as a contractor, but the contract I have is a letter of understanding as opposed to a real contract, and it was signed 12 years ago under another owner. I am sensing a lot of negative actions from my boss and I fear that I am being set up to lose my job. I have suffered mental distress from his weekly harassment. If so, what can I do?