William Carmichael had been employed as a full-time instructor at

a community college in Ontario for 15 years. An internal study conducted by the college to meet budgetary constraints indicated that instructors could be hired on a part time basis at half the rate paid to full-time instructors. This would result in considerable cost savings to the college and allow it to better support students in other ways. Carmichael who is 50 years old, was offered an early retirement package by the college. The package offered was not particularly attractive and Carmichael turned it down. The next week Carmichael was given notice terminating his employment.

Did Carmichael's refusal to accept the early retirement package allow the college to terminate his employment with cause? What additional information would you require from Carmichael in order to determine what might be a reasonable settlement of this matter? Also, explain why this information helpful.