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ARTICLE · 06 OCTOBER 2014

Ceiling On Wrongful Dismissal Damages – The Sky Is Not The Limit

With the abolition of a mandatory retirement age in Ontario, many practitioners have queried whether this would result in notice periods being lengthened in wrongful dismissals.

CanadaEmployment and HR
Geoffrey R. Cobham
Geoffrey R. Cobham

With the abolition of a mandatory retirement age in Ontario, many practitioners have queried whether this would result in notice periods being lengthened in wrongful dismissal situations involving employees over the traditional retirement age of 65.

In the recent decision of the Ontario Court of Appeal in Kotecha v. Affinia Canada Limited, the general rule of thumb, that damages for wrongful dismissal should not exceed 24 months, except in exceptional circumstances, was reaffirmed.

The decision is a welcome one for employers, as it brings some certainty to the maximum award which will be granted for damages for wrongful dismissal in most cases.

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