The grievor was previously found to have been terminated without just cause, but her claims of harassment and discrimination were dismissed.
As a remedy, the grievor declined reinstatement and sought both back pay and damages in lieu of reinstatement, along with punitive damages and damages for mental distress.
The arbitrator held that awarding both back pay and damages in lieu of reinstatement is conceptually inconsistent where the employment relationship has not been destroyed by the employer's bad faith.
The arbitrator awarded damages in lieu of reinstatement calculated at 1.25 months' wages per year of service for seven years, plus a 15% top-up for loss of benefits, and statutory entitlements under the Employment Standards Act.
Claims for punitive damages and mental distress were dismissed as the employer's conduct did not amount to bad faith and the secondary effects of termination are not compensable.