Ontario Severance

S. v. The Globe and Mail

1996 CanLII 10215 (ON CA)Court of Appeal for OntarioDecided Severance pay

S. v. The Globe and Mail: Severance Deduction & Interest

Summary

This appeal addressed whether severance pay under the Employment Standards Act is deductible from wrongful dismissal damages and how prejudgment interest should be calculated on such damages. The Court of Appeal found that severance pay is deemed deductible in the absence of clear legislative direction to the contrary and corrected the trial judge's calculation of prejudgment interest, which should have run from the date of service of the statement of claim rather than the date of dismissal.

Outcome

Appeal allowed in part regarding prejudgment interest; severance pay deduction upheld; costs upheld.

Award

Severance pay deemed deductible from wrongful dismissal damages; prejudgment interest recalculated from date of service of statement of claim; plaintiff awarded party-and-party costs.

Key Factors

  • wrongful dismissal
  • severance pay deduction
  • Employment Standards Act
  • prejudgment interest
  • statutory interpretation

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More Ontario employment decisions from the 1990s

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.