OCA Awards Cost of Benefits and Bonus over Notice period :

Sometimes it takes the Court of Appeal to remind trial judges that some areas of wrongful dismissal law are set and not to be changed by them.

In Singer v Nordstrong Equipment ( 2018 ONCA 364 Justice Feldman again explained two basic principles of employment law in Ontario:

1) The correct way of valuing lost benefits during the notice period is the cost of replacing the benefits, or more exactly the cost to the employer in providing those benefits, The Plaintiff need not prove out of pocket costs.

2) In assessing the entitlement to bonus over the notice period, the Court first determines if the bonus was an integral part of the Plaintiff’s compensation package . and if the answer is ” yes” then ” if ” there is nothing in the bonus plan that negates entitlement to a bonus during the a period of reasonable notice , damages for wrongful dismissal include compensation  for loss of the bonus ”  In determining the quantum of the bonus the Court took the two year average of past bonus payouts.