Pension Benefits Do Not Replace Wages Owed, Supreme Court Rules
An employee’s pension payments should not be deducted from damages otherwise payable for wrongful dismissal, the Supreme Court ruled recently. Pension benefits are not intended to indemnify wage loss due to unemployment, but rather are a form of deferred compensation for service and constitute a type of retirement savings. In a decision released earlier this month, IBM Canada Limited v. Waterman, the employee Waterman had been dismissed without cause after 42 years of service. IBM offered only 2 months pay in lieu of notice, leading Mr. Waterman to sue for wrongful dismissal. The trial judge awarded 20 months notice, and ... [more] Full article
Six months’ severance is six months’ severance! Dismissed employee awarded full contractual severance, despite new job
In its decision released on June 21, 2012 in Bowes v. Goss Power Products Ltd., 2012 ONCA 425, the Ontario Court of Appeal confirmed that where an employer has agreed to continue paying salary to a dismissed employee for a fixed period in a written employment agreement, that is the obligation and it will be enforced. [more] Full article
Reasonable notice periods still not “one size fits all”
You know that “rule of thumb” of one month notice for each year of employment? The one we use as a rough guideline for getting in the ballpark when determining a reasonable notice periods? The Court of Appeal has reminded us that the “rule of thumb” may not even get you near the ballpark when dealing with senior, high salaried employees. [more] Full article
Business judgment rule does not trump unanimous shareholders’ agreement
Directors of a corporation cannot invoke the business judgment rule to justify decisions that violate a unanimous shareholders’ agreement, the Ontario Divisional Court held recently. [more] Full article