By Barry W. Kwasniewski and Martin U. Wissmath

Air Canada Executive Wins 24 Months’ Damages for Wrongful Dismissal

A former Air Canada senior executive was awarded over $400,000 in damages in the Ontario Superior Court of Justice after he sued the airline for wrongful dismissal. In addition to pay in lieu of notice, Justice A.P. Ramsay (Ramsay J) also ordered Air Canada to pay the plaintiff, Roland Ruel, further damages arising from bonus plans he would have received during the 24-month reasonable notice period, including a potential bonus as part of a COVID-19 compensation program, as well as post-retirement travel privileges for reaching 25 years of service. Published April 4, 2022, Ruel v Air Canada summarizes the legal principles for common law reasonable notice in Ontario. The case is important for employers of charities and not-for-profit organizations to understand how the court calculates wrongful dismissal damages and interprets language, or the lack thereof, in employment contracts or policies concerning termination of employees, especially where those contracts and policies purport to limit an employee’s common law rights.

For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 514.

​Read the June 2022 Charity & NFP Law Update