Ontario Severance

D. v. Transasian Fine Cars Ltd.

2025 ONSC 7382 (CanLII)Ontario Superior Court of JusticeDecided Employment standards

ESA Termination & Severance: Frustration of Contract

Summary

This is an interlocutory application concerning the calculation of termination pay and severance pay under the Employment Standards Act, 2000, following a frustration of contract due to disability. The court addressed whether 'regular wages' for these statutory entitlements should be based on pre-injury earnings or the accommodated reduced-rate earnings from the last 12 weeks worked. The application was dismissed, with the court applying a plain reading of the statute and precedent from Hoekstra v. Rehability to calculate payments based on the last 12 weeks worked.

Outcome

Application dismissed; payment ordered based on last 12 weeks worked

Award

Termination pay and severance pay calculated on average weekly wages from the last 12 weeks worked

Key Factors

  • employment standards
  • termination pay
  • severance pay
  • frustration of contract
  • disability accommodation

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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.