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ARTICLE · 11 FEBRUARY 2026

Cautionary Tale Of Employment Litigation – Grealy v. XL Tool

Mackoff Mohamed
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In the recent case of Grealy v. XL Tool Inc., 2025 ONSC 4010, the plaintiff, Mr. Grealy, was awarded only $4,600 after a two-day trial, despite seeking over $91,000 plus punitive damages.

CanadaEmployment and HR
Gale Kim
Gale Kim

In the recent case of Grealy v. XL Tool Inc., 2025 ONSC 4010, the plaintiff, Mr. Grealy, was awarded only $4,600 after a two-day trial, despite seeking over $91,000 plus punitive damages. Although this case is from Ontario, it highlights the complexities and risks of employment litigation, and serves as a reminder that sometimes, both parties end up with less than expected.

Case Background

Mr. Grealy, a 35-year-old machinist, was employed by XL Tool for just 8 months — three months part-time and five months full-time. After his termination due to a work shortage, he was paid only one week's termination pay. Prior to this, Grealy had left a stable job of 14-years to join the defendant.

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