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The following case is about an Ontario employee who was given a temporary lay–off notice after approximately 15 years of employment. The employee alleged that the temporary lay–off notice was in fact an attempt to dismiss him permanently. While the court agreed and deemed the employer to have constructively dismissed the employee, it found the employee failed to take any reasonable steps to mitigate his damages. Accordingly, the employee was awarded three months’ salary in lieu of notice, instead of the 15 months that was claimed.
The Ontario Court of Appeal had to recently determine whether the wording of a bonus plan was effective to limit an employee’s right to receive compensation for lost salary and bonus during the period of reasonable notice.
The Conference Board of Canada Compensation Planning Outlook survey is projecting an overall average base pay increase of 2.2 percent in 2017 for non-unionized employees, with certain organizations planning a pay freeze across all employee groups.