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ARTICLE · 14 MARCH 2023

Only In "Exceptional Circumstances"

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Recently the Superior Court of Justice confirmed that there is no "cap" on reasonable notice damages in the termination of a long-term employee.

CanadaEmployment and HR
Michael Lerner
Michael Lerner
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Recently the Superior Court of Justice confirmed that there is no "cap" on reasonable notice damages in the termination of a long-term employee. In Milwid v. IBM the Court recognized that "exceptional circumstances" existed to extend what some believed to be a 24-month cap on damages. The employee had been employed by IBM for 38 years in a senior management position. In addition to his base salary, he enjoyed additional collateral benefits, including restricted stock units, a discretionary bonus, and an employer contribution to the company pension plan. In its decision, the Court reviewed all of the Bardhol factors plus the fact the employee was terminated shortly after the declaration of the Covid-19 pandemic.

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