BC Court of Appeal rules that CERB is NOT deductible from wrongful dismissal damages

In Yates v Langley Motor Sport Centre Ltd (2022 BCCA 398), Justice Bauman finally definitively answered the issue of whether or not CERB payments received by a terminated employee are deductible from wrongful dismissal damages that cover the same time period.

The answer was NO, they are not deductible and thus the windfall goes to the benefit of the employee, not the employer.

The analysis was largely based on social policy. The concluding words say it all:

“Whether the payments are in the end to be repayable by the plaintiff is of no concern to the defendant employer. It is a matter between the plaintiff and the authorities administering the plan.”

This is the first appellate decision on this issue, and as this is a federal law, it is my understanding that all lower courts in Canada are obligated to follow it.

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Barry B. Fisher LL.B.

Barry B. Fisher, LL.B., is a mediator and arbitrator of both employment and labour relations matters. He offers three forms of ADR based on clients’ needs: Mediation, Arbitration and Med/Arb. Barry is from the evaluative school of mediation and brings his over 30 years' experience as an employment lawyer and legal author to the dispute. In addition to his knowledge of the legal issues involved in these disputes, he also has a deep understanding of the psychological factors that motivate both employees and employers. By combining these two skills, Barry is able to achieve a settlement rate of over 80% of the disputes that he mediates.

Latest posts by Barry B. Fisher LL.B. (see all)

• Employer loses on just cause and pays $50,000 in bad faith damages in part because of improper investigation - January 16, 2023
• BC Court of Appeal rules that CERB is NOT deductible from wrongful dismissal damages - December 12, 2022
• Employer wacked with $55,000 of moral and punitive damages - November 28, 2022