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ARTICLE · 23 JUNE 2021

You Can't Have Your CERB And Damages Too

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A British Columbia Court recently ruled that an employer should deduct Canada Emergency Response Benefits (CERB) from an employee's wrongful dismissal damages.

CanadaEmployment and HR
Aaron Marchadour
Aaron Marchadour
Jean Torrens
Jean Torrens
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A British Columbia Court recently ruled that an employer should deduct Canada Emergency Response Benefits (CERB) from an employee's wrongful dismissal damages. This result conflicts with an earlier case from Ontario creating legal uncertainty for employers when considering severance packages and settlements for former employees who received CERB.

The Facts in the B.C. Case

In Hogan v 1187938 B.C. Ltd., 2021 BCSC 1021 (Hogan), the employee had worked at the same car dealership for over 20 years. In an effort to cut costs during the COVID-19 pandemic, the employer laid off a number of employees in March 2020, including Hogan.

Hogan and the employer entered into a temporary layoff agreement under the assumption that Hogan would return to his employment at the dealership at some point in the future. Five months later, the employer terminated Hogan's employment effective immediately. Hogan sued, arguing that he was constructively dismissed at the time of his

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