Judge Awards Employee 30 Months’ Termination Pay

by | Feb 5, 2019 | For Employees

If your employment is terminated after more than 30 years service, then you may be entitled to at least 30 months’ termination pay. This result happened in a recent case.

The Facts

Mr. Dawe was terminated without just cause after 37 years service when he was 62 years old. As is normally the case, his employer, Equitable Life Insurance, provided him with no notice of termination.

The Issue

The main issue to decide in this case is how much notice of termination should Equitable Life have given Mr. Dawe.

The Decision

When determining the appropriate notice period, the judge considered the same factors that judges have been considering since 1960 namely:

  1.   age of the employee (62);
  2.   the character or nature of the employment (Senior Vice-President);
  3.   the length of service to the employer (37 years); and
  4.   the availability of similar employment, having regard to the experience, training and qualifications of the employee (no similar employment opportunities).

With respect to the last factor, the judge stated: “When there is no comparable employment available, termination without cause is tantamount to a forced retirement.”

With respect to Mr. Dawe’s retirement plans, the judge concluded: “Mr. Dawe had commenced the process of retirement planning, not uncommon at his age and logical given the nature and focus of the life insurance industry. Mr. Dawe had made no decision as to when retirement would occur. He says he was committed to working at Equitable Life until at least age 65. Retirement, if voluntary, may have occurred sooner or later. On the evidence, I conclude it is more likely Mr. Dawe would have worked at Equitable Life until age 65.”

Mr. Dawe requested a 30 month notice period and the judge concluded that “Mr. Dawe’s position of a 30 month notice period is more than reasonable.”

Lessons to be Learned

  1. A 24-month settlement offer may not be fair. In the past, most judges have been reluctant to award a notice period above 24 months. In recent years, however, some judges have been ordering notice periods in excess of 24 months. There are awards at 26 months, 28 months and in this case, 30 months. In fact, the judge in this case the judge stated that he thought 36 months was appropriate but awarded 30 months’ termination pay because this is the notice period that Mr. Dawes requested.
  2. If you are an employee in your 60s with more than 10 years service, then you may be to more than one month termination pay for each year of service.
  3. If an employer approaches you about your long term plans, it may be trying to lock you into a retirement date. You are not required to retire so think twice before answering this question and obtain employment advice if you think you need it.

NOTE: The Ontario Court of Appeal (Dawe v. The Equitable Life Insurance Company of Canada, 2019 ONCA 512) overturned the trial judge’s decision and reduced the reasonable notice period from 30 months to 24 months.

For almost 30 years, Doug MacLeod of the MacLeod Law Firm has been advising employees on all aspects of the employment relationship. If you have any questions, you can contact him directly at 416-317-9894 or at [email protected]

The material and information in this blog and this website are for general information only. They should not be relied on as legal advice or opinion. The authors make no claims, promises, or guarantees about the accuracy, completeness, or adequacy of any information referred to in this blog or its links. No person should act or refrain from acting in reliance on any information found on this website or blog. Readers should obtain appropriate professional advice from a lawyer duly licensed in the relevant jurisdiction. These materials do not create a lawyer-client relationship between you and any of the authors or the MacLeod Law Firm.



Recent Posts


Recent Posts

Justice for Unionized Employees

Unionized employees often seek our advice regarding human rights issues in their workplace. Sometimes this is because human rights violations have occurred and the union is not assisting them. Other times, the union itself may be part of the problem. The rights of...

read more

Toronto Office

702 - 2 Bloor Street West,
Toronto, ON M4W 3E2

Barrie Office

277 - 92 Caplan Avenue,
Barrie, ON L4N 9J2

Collingwood Office

220 - 1 First Street
Collingwood, ON
L9Y 1A1



+1 (888) 640-1728


(866) 883-8445


[email protected]

Toronto Office

729 - 2 Bloor Street West, Toronto ON M4W 3E2

Barrie Office

277 - 92 Caplan Avenue, Barrie ON L4N 9J2

Collingwood Office

220 - 1 First Street, Collingwood, ON L9Y 1A1


Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!