Ontario Severance

M. v. Alexander Centre Industries Ltd.

2001 CanLII 3871 (ON CA)Court of Appeal for OntarioDecided Wrongful dismissal

Wrongful Dismissal: Non-Deductibility of Disability Benefits

Appeal history

Summary

This is an appeal to the Court of Appeal from a trial judge's decision about whether disability benefits should be deducted from wrongful dismissal damages. The employee, K.M., sued his former employer, Alexander Centre Industries Limited, after he was fired while on medical leave. The trial judge awarded the employee 24 months' notice plus two months for bad faith discharge, and declined to deduct his disability benefits from the award. The Court of Appeal dismissed the employer's appeal, finding that the disability benefits were akin to private insurance because the employee accepted a lower starting salary in exchange for the coverage. The trial judge's award of 24 months' notice and two months for bad faith without deducting the disability benefits stands.

Outcome

appeal dismissed

Award

Disability benefits held to be non-deductible from wrongful dismissal damages; additional damages awarded for bad faith discharge.

Key Factors

  • wrongful dismissal
  • non-deductibility of benefits
  • disability benefits
  • bad faith discharge
  • Wallace principles

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More Ontario employment decisions from 2001

This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.