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ARTICLE · 11 FEBRUARY 2014

Top Employment Law Developments In 2013

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The decisions outlined below gave rise to what we believe were the most noteworthy employment law developments of 2013

CanadaEmployment and HR
Lisa Talbot
Lisa Talbot
Mitch Frazer
Mitch Frazer
Brad Tartick
Brad Tartick
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What Employers Need to Know for 2014

The decisions outlined below gave rise to what we believe were the most noteworthy employment law developments of 2013. We discuss how these developments will affect employers in 2014.

1. Pension Benefits are Not Deductible from Damages for Wrongful Dismissal

In IBM Canada Limited v. Waterman,1 the Supreme Court of Canada held that employers may not deduct earned pension benefits from wrongful dismissal damages. The Court found that pension benefits earned through years of service are a form of deferred compensation and retirement savings and should not typically be deducted from wrongful dismissal damages. It seems as though the Supreme Court left open the possibility for employers to expressly stipulate in the employment agreement, or in the pension plan, that wrongful dismissal damages and pension benefits will not be paid simultaneously. How a court would interpret such a clause in the future remains to be tested. 

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