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ARTICLE · 20 JANUARY 2023

CERB Not To Be Deducted From Wrongful Dismissal Damages In Alberta

Prior to the two Court of Appeal decisions, case law across the country was divided on this issue. This meant that Alberta employers litigating the amount of reasonable notice...

CanadaEmployment and HR

A recent decision of the Alberta Court of Appeal has confirmed that in Alberta, Canada Emergency Response Benefit (CERB) payments received by employees following the termination of their employment should not be deducted from damages for wrongful dismissal. This decision follows a recent BC Court of Appeal decision that reached the same conclusion.

Prior to the two Court of Appeal decisions, case law across the country was divided on this issue. This meant that Alberta employers litigating the amount of reasonable notice to be provided to a former employee who received CERB following termination could ask the court to reduce any damages awarded to the employee by the amount of CERB received. Such arguments weren't always successful, but there was a chance they might be. More practically, this meant that employers negotiating severance packages with former employees who had received CERB could attempt to reduce the cost of the severance package by the amount of

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