Pavlov v The New Zealand and Australian Lamb Company Limited, 2022 ONCA 655 (“Pavlov”)
In Pavlov, the Ontario Court of Appeal confirmed that the notice period for a terminated employee may be lengthened where prevailing economic uncertainties, such as the COVID-19 pandemic, have a negative impact on the terminated employee’s ability to secure similar alternative employment.
In accordance with the above principle, the Court upheld a 10-month notice period for a 47-year-old Director of Marketing Communications, who was terminated without cause in May 2020, near the beginning of the pandemic. He had under 3 years of service and was earning $132,000 annually plus bonuses at the time of termination.
This case is of significance in wrongful dismissal disputes, as it is the first appellate level decision in Canada to comment on whether the economic effects of the pandemic affect the notice period a terminated employee is entitled to.
In particular, Pavlov indicates that employees terminated during the pandemic may be entitled to longer notice periods and greater severance pay.
It also affirms that short service employees may be entitled to relatively lengthy notice periods and consequently increased severance pay.
It would be wise to take note of this case in determining the reasonableness of any settlement offer and in assessing the risk of proceeding to trial.
If your employment has been terminated, and regardless of whether you were a long-term or short-term employee, you should seek legal advice immediately.
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