The grievor, a correctional officer, received an anonymous racist and threatening letter at her home, one of several sent to minority employees at the Toronto Jail.
She suffered mental stress, went on leave, and received WSIB benefits.
The parties agreed on the facts and asked the Public Service Grievance Board to determine the appropriate remedy.
The employer argued that the Workplace Safety and Insurance Act precluded further remedy for loss of income.
The Board held that the human rights guarantee against racial harassment was an implicit term of the employment contract.
The Board found it had jurisdiction to compensate for financial losses and mental distress flowing from the breach of this contractual guarantee, distinct from the WSIB's jurisdiction over health injuries.
The Board ordered the employer to pay the difference between her WSIB benefits and her regular income, plus $20,000 for mental distress, but declined to award costs.