Three Jewish teachers took a day off to celebrate Yom Kippur.
The School Board granted them a leave of absence but without pay.
The teachers' union brought a grievance seeking reimbursement for the day's pay.
The Supreme Court of Canada held that the school calendar, although neutral on its face, had the effect of adversely discriminating against Jewish teachers.
The Court found that the School Board failed to take reasonable steps to accommodate the teachers short of undue hardship, as paying them for the day would not impose an unreasonable financial burden and was permitted under the collective agreement.