It is a well-established principle of Ontario employment law that, barring exceptional circumstances, the maximum severance period an employee can expect to receive upon dismissal tops out at 24 months. Ontario’s Court of Appeal has reaffirmed this point time and again.
older long service employees
When it comes to resignations, the facts matter and the decision of Nagpal v. IBM certainly proves it. In another notable case on resignations in Ontario, Schabas J. had to determine whether an employee’s failure to return to the workplace after his disability benefits were denied amounted to voluntary resignation or abandonment of employment.
Courts have previously recognized that older employees may struggle to find comparable re-employment. In a recent decision, the Ontario Superior Court of Justice awarded 24 months’ common law reasonable notice to a dismissed employee who was 61 years old at the time of dismissal. This decision provides some helpful direction and guidance for employers that move to terminate the employment of older, long service employees from their organization.