The appellant company appealed an award of damages for wrongful dismissal, arguing that deductions should be made for income tax and unemployment insurance benefits.
The Supreme Court of Canada dismissed the appeal, holding that it would be illogical to allow the employer a deduction for income tax not payable, and doubting the correctness of previous decisions that damages for wrongful dismissal are not taxable.
The Court also held that unemployment insurance benefits are a consequence of the contract of employment and cannot be deducted from damages for wrongful dismissal.
