Ontario Severance

D. v. Imperial Oil Limited

2019 ONCA 448 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

Employer's appeal dismissed; 26 months' notice stands

Appeal history

Summary

This is an appeal to the Court of Appeal from a motion judge's decision in a wrongful dismissal action following the sale of a retail business. The employer appealed the award of damages to two dismissed employees, arguing they failed to mitigate by refusing employment with the purchaser, while the employees cross-appealed regarding the calculation of their savings plan benefits. The motion judge found the employees acted reasonably in refusing the purchaser's offers and set a 26-month notice period, but limited their savings plan damages to 3% of their salaries. The Court of Appeal dismissed the employer's appeal and allowed the cross-appeal, concluding the purchaser's job offers were not comparable due to decreased benefits and that the employees were entitled to higher savings plan contributions. A 26-month notice period stands, with the employer ordered to pay 6% matching contributions for the notice period.

Outcome

employer's appeal dismissed; employees' cross-appeal allowed; 26 months' notice upheld

Award

Employer's appeal dismissed; 26-month notice period stands and savings plan damages increased.

Key Factors

  • wrongful dismissal
  • mitigation of damages
  • reasonable refusal of employment
  • pension benefits
  • damages calculation

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More Ontario employment decisions from 2019

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.