The appellant employer appealed a wrongful dismissal decision awarding the respondent 24 months' severance and two months' Wallace damages.
The Court of Appeal upheld the trial judge's finding that the respondent was a 23-year employee despite a two-year gap for maternity reasons.
However, applying Honda Canada Inc. v. Keays, the Court set aside the Wallace damages because the respondent's mental distress did not qualify for compensatory damages.
The Court also corrected a double-counting error regarding Employment Standards Act severance pay.
The appeal was allowed in part.