Employment Update

Court of Appeal Upholds 24-month Reasonable Notice, $50K Aggravated Damages

The Ontario Court of Appeal has clarified the requirements for employers to prove that a terminated employee failed to mitigate their damages, and the basis for a claim of aggravated or moral damages, in wrongful dismissal cases. A decision published on May 2, 2024, Krmpotic v Thunder Bay Electronics Limited, on appeal from an earlier trial decision, upheld the trial judge's finding of 24 months' reasonable notice, and $50,000 in aggravated damages. The two employers, Thunder Bay Electronics Limited, and Hill Street Financial Services (the "Employers") appealed the trial decision. The Court of Appeal (the "court") dismissed the Employers' appeal, which argued that there was insufficient medical evidence for the employee, Drago Krmpotic, to claim that he was physically incapacitated following his termination. The court also did not find the trial judge made any error in awarding $50,000