Smashing the Reasonable Notice Ceiling

It is widely, but wrongly, assumed that common law reasonable notice of termination never exceeds 24 months. Yet Canadian courts have smashed the 24-month "ceiling" on  several occasions.

For example, last year an Ontario court awarded a 26-month notice period to a 65-year old assistant warehouse supervisor who had been employed for 35 years [1]. A decade earlier, the Ontario Court of Appeal upheld a trial decision of 27 months for a 60-year old senior manager of 35 years [2].

In 2003 a New Brunswick court went further when it awarded 28 months of salary to a pair of 31-year papermill supervisors ages 51 and 52 [3].  Seven years earlier, that province's highest court ruled that a 57-year old executive sports editor employed for 36 years was also entitled to 28 months [4]. 

It is important to note that none of these decisions involved a finding of bad faith or other objectionable behaviour on the part of the employer.[5]

The morale: Whether you are firing or have been fired, don't make assumptions. Instead, call an employment lawyer.

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[1] Hussain v. Suzuki Canada Ltd., 2011 CarswellOnt 12251
[2] Cowper v. Atomic Energy of Canada Ltd., 2000 CarswellOnt 1745
[3] Walsh v. UPM-Kymmene Mirimachi Inc., 2002 CarswellNB 533 (Q.B.), affd. [2003] N.B.J. No. 166 (C.A.)
[4] Donovan v. New Brunswick Publishing Co., 1996 CarswellNB 601 (C.A.)
[5] The Supreme Court of Canada ended the practice of extending notice periods to punish bad faith on the part of an employer, commonly known as a "Wallace bump-up". See Honda Canada Inc. v. Keays, [2008] 2 S.C.R. 362.