No "Black Friday" For Employers

The Ontario Court of Appeal has decided that employers should not get a discount on reasonable notice in bad times. On November 23, 2015, the Ontario Court of Appeal released its decision in Michela v. St. Thomas of Villanova Catholic School (2015 ONCA 801). The Court decided, among other issues, that the period of reasonable notice awarded to a dismissed employee is not reduced as a result of an employer's poor economic circumstances. The motion judge's decision in this particular case (2015 ONSC 15) to the reduce notice period from twelve months to six months was set aside.

The motion judge heard evidence that the reason for the termination of the plaintiffs' employment was lower than anticipated enrollment at the defendant employer's school, which would likely result in a $300,000 shortfall in revenue unless five positions were eliminated. The motions judge specifically noted that the employer was an independent school and not directed to making a profit. He