The respondent, a government employee, was terminated while receiving short-term disability benefits.
He sued for wrongful dismissal and was awarded damages representing his salary for a 20-month notice period, with the Court of Appeal holding that disability benefits received during that period should not be deducted.
The Supreme Court of Canada allowed the employer's appeal, holding that the employment contract did not intend for the employee to receive both disability benefits and damages for wrongful dismissal simultaneously.
Consequently, the disability benefits received during the notice period must be deducted from the wrongful dismissal damages.
