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ARTICLE · 11 AUGUST 2021

Are CERB Payments Deductible From Wrongful Dismissal Damages? Maybe

L&E Global
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Mr. Hogan commenced a lawsuit claiming he was wrongfully dismissed and seeking common law reasonable notice.

CanadaEmployment and HR
Janeta Zurakowski (Filion Wakely Thorup Angeletti)
Janeta Zurakowski (Filion Wakely Thorup Angeletti)
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In a recent "win" for employers, and a decision that is the "first of its kind", a court in British Columbia deducted Canada Emergency Response Benefit ("CERB") payments from wrongful dismissal damages awarded to an employee during the COVID-19 pandemic. However, Hogan v 1187938 B.C. Ltd., 2021 BCSC 1021 ("Hogan") is an outlier from other recent cases decided by various courts across the country, that contrarily suggest CERB benefits will not be deducted from wrongful dismissal damages.

Background

In 1998, Terence Hogan commenced employment with Mercedes-Benz Canada. Over the course of his tenure, Mr. Hogan was promoted several times, including to his most recent position of assistant service manager at Mercedes-Benz Vancouver (the "Dealership").

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