The Supreme Court of Canada reiterated in Honda Canada Inc. v. Keays, 4 at para. 32 that damages are confined to the loss suffered as a result of the employer's failure to give proper notice of dismissal, measured by the loss of wages and salary, and other benefits, that would have been
earned during the reasonable notice period.
Not exact matches
Damages for dismissal without
reasonable notice are designed to compensate employees for the losses incurred
during the
period of
reasonable notice — the amount of wages and benefits that they would have
earned had they been permitted to serve out the
notice period.»
Any employment income that was
earned by the plaintiff from other sources
during the
reasonable notice period will then be deducted.
A court will reduce any monetary award made to the former employee by the amount of employment income the employee
earned from other sources
during the
reasonable notice period.
The remedy is damages paid by the employer in the amount equal to the compensation that would have been
earned by the employee
during the
reasonable notice period that is owed.
That is, the appellant took issue with the trial judge's finding that under the Employment Agreement the appellant was not entitled to compensation for the loss of the LTIP benefits he would have
earned during a
period of
reasonable notice because the appellant was only entitled to severance pay, not the salary and other benefits which would have flowed to him
during a
period of
reasonable notice.
Usually, an employer may choose to terminate an employee by providing «
reasonable notice» of termination or payment in lieu equivalent to
earning that would have been paid
during the
notice period.