The respondent, a middle manager for the former City of North York, was terminated following municipal amalgamation and unsuccessful job competitions.
The trial judge awarded 116 weeks' pay in lieu of notice, including an extension for bad faith conduct under Wallace, finding the employer's competition process was 'sloppy'.
The Court of Appeal allowed the employer's appeal, holding that the employer's conduct did not amount to bad faith or unfair dealing justifying a Wallace extension.
The court reduced the notice period to the 80 weeks originally offered by the employer.
The respondent's cross-appeal seeking reinstatement on the basis that he was an office holder was dismissed.