Are Employers’ Financial Circumstances Relevant in Calculating Termination Pay?
In a word. No.
The Ontario Court of Appeal has reaffirmed, definitively, that an employer’s financial circumstances are not relevant to the determination of reasonable notice in a particular case.
The lower court judge had awarded teachers who had their employment terminated from their school 12 months of pay in lieu of notice. However, the judge reduced this by half, to 6 months, in large part due to the financial circumstances that the school was in. The lower court judge cited a passage from a prior decision that noted that “The law does not ignore the dilemma of the . . . [more]
