A June 2010 ruling of the Ontario Superior Court in Simpkin v. Ability Machine and Manufacturing Inc. demonstrates that in wrongful dismissal cases, quantification of damages is not confined to wages that would have been earned during the notice period, but will also include the replacement cost of benefits during this period.
In Simpkin, after awarding sixteen (16) months to a wrongfully dismissed, long-term machinist turned shop foreman, Justice Trotter fixed the replacement cost of benefits during the notice period at $275.00 per month, awarding the plaintiff-employee $4,400.00 for lost benefits.
As a note, this ruling was made on an unopposed summary judgment motion.
As this case illustrates, where an employee is wrongfully terminated, there is an entitlement to the value of lost employment benefits during the notice period, in addition to lost wages.
If you believe you have been wrongfully terminated, please contact a lawyer who can advise as to your rights and entitlements under the Ontario Employment Standards Act and at common law.
– Robert Tanha, Toronto
Originally published on Wise Law Blog on March 22, 2011. For more information on Employment Law in Toronto, visit our Employment Law Services page.