Court Considers Impact of Covid-19, CERB, for Employee Pay-in-lieu Entitlements
March 2021 Charity & NFP Law Update
Published on March 25, 2021

By Barry W. Kwasniewski


Calculating the impact of COVID-19 on an employee’s reasonable notice period or pay-in-lieu of notice must consider the outlook that was available at the time employment was terminated, according to a recent ruling of the Ontario Superior Court. Iriotakis v Peninsula Employment Services Limited (“Iriotakis”), a February 9, 2021 judgment, offers some of the first commentary by an Ontario court concerning the effect of the ongoing pandemic on the legal principles of common law reasonable notice which can result from wrongful dismissal suits by employees. Iriotakis does not provide a bright-line rule on the issue, but the judgment does offer some guidelines as a precedent for future decisions to consider. Employers of registered charities and not-for-profit organizations will want to follow the development of the law in this matter, as pay-in-lieu of notice can become expensive where lengthy reasonable notice periods are awarded. Iriotakis also involves the calculation of damages for pay-in-lieu, with reasons given concerning how the Canada Emergency Response Benefit (CERB) might affect what an employee is entitled to receive. 

For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 490.


Read the March 2021 Charity & NFP Law Update