Last week the Supreme Court of Canada delivered a ruling to
clarify what has been an unsettled issue in employment law. In a
wrongful termination dispute, IBM
Canada Limited v. Waterman (2013 SCC 70)
Canada's highest Court heard an appeal from the British
Columbia Court of Appeal with regard to Waterman's entitlements
on termination.
Waterman was a long-term employee who had been wrongfully
dismissed by IBM. After his employment ended, Waterman began
drawing from his pension benefits, and then launched his claim for
wrongful dismissal damages. At trial, he was awarded pay in lieu of
notice of termination equivalent to 20 months' salary.
IBM took the position that since Waterman had been in receipt of
pension benefits, he was not also entitled to collect pay in lieu
of notice. In the company's view, this would be a form of
"double-dipping" whereby Waterman would get to collect
twice for the same loss. Its position was that since a wrongfully
dismissed employee is
