The employer appealed a wrongful dismissal damages award where the employee received pension benefits during the reasonable notice period.
The majority held pension payments from a defined benefit plan are generally deferred compensation and not indemnity for wage loss, so they are not deducted as a compensating advantage.
It emphasized that collateral-benefit deductibility depends on the nature and purpose of the benefit, contributory characteristics, contractual intention, and policy considerations.
Applying those factors, the employee’s pension entitlement did not reduce damages payable in lieu of notice.
The appeal was dismissed, with dissenting reasons favouring deduction under a single-contract performance analysis.
