IBM Canada Limited v. Richard Waterman (December 14, 2012)
Case # 34472
The respondent was employed by IBM for over 40 years before being terminated without cause with two months notice.
When his employment terminated, he was 65 years of age and eligible to receive benefits under IBM’s employer funded pension plan.
At the time he had no intention of retiring and sued for wrongful dismissal.
After termination, he received a pension benefit of $2,124.25 per month.
The trial judge held that the appropriate notice period was 20 months.
The trial judge awarded damages based on lack of notice for 18 months.
The respondent was paid pension benefits after termination based on a fully vested pension.
The trial judge did not deduct the amount of pension benefits paid during the notice period from the damages award.
IBM Canada Limited appealed, arguing that an amount equal to the pension benefits should have been deducted from damages.
The Court of Appeal dismissed IBM’s appeal.