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ARTICLE · 23 JUNE 2021

CERB Payments Deductible From Wrongful Dismissal Damages

McMillan LLP
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The Covid-19 pandemic has had a drastic impact on Canadian businesses, and resulted in many Canadian employers resorting to terminations and layoffs to keep their businesses afloat.

CanadaEmployment and HR
Dianne Rideout
Dianne Rideout
Michelle McKinnon
Michelle McKinnon
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The Covid-19 pandemic has had a drastic impact on Canadian businesses, and resulted in many Canadian employers resorting to terminations and layoffs to keep their businesses afloat.

In an effort to assist Canadians whose employment was directly impacted by Covid-19, the Canadian government instituted the Canada Emergency Response Benefit ("CERB"), which provided financial support to employed and self-employed Canadians who were unable to earn an income.

Since the inception of CERB, there has been much discussion and speculation about whether CERB payments received by employees would constitute mitigation earnings in the context of a wrongful dismissal. In Hogan v. 1187938 B.C. Ltd., 2021 BCSC 1021, the British Columbia Court for the first time discusses this issue.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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