Ontario Air Canada employee awarded nearly $133K following COVID-19 layoff

Williams v. Air Canada

In this case, the Ontario Superior Court of Justice awarded Masayo Williams, a 52-year-old International Operations Training Manager at Air Canada, with nearly $133,000 in compensation after determining that she was wrongfully dismissed by the airline during the COVID-19 pandemic.

The court found that Williams reasonably fulfilled her duty to mitigate following her termination in May 2020 and was entitled to 24 months of severance pay.

SEE ALSO
• Severance pay for Air Canada employees
• Rights to severance for federally regulated employees
• Severance pay in a recession

Facts of the case

• Williams joins Air Canada on June 3, 2000. However, information from her previous employer, Canadian Airlines International, indicates that Air Canada considered her start date to be October 17, 1996.
• In 2016, Williams is promoted to “International Operations Training Manager” at Air Canada.
• Grappling with the economic challenges created by the COVID-19 pandemic, Air Canada decides to reduce its workforce by half in 2020.
• As of May 2020, Williams was receiving an annual base salary of $70,380. She was also eligible to participate in Air Canada’s group insurance benefit plan, pension plan, annual incentive plan, and profit sharing plan.
• On May 25, 2020, Williams is terminated without cause, effective immediately. After reviewing the severance package offered by Air Canada, she chooses to decline it.
• Following Williams’ rejection of the severance offer, Air Canada provides her with the minimum statutory entitlements under the Canada Labour Code (CLC), which totalled $11,289.17.
• From June 2020 to July 2021, Williams is unable to secure new employment. During this time, she applies for 17 positions and participates in two interviews.
• In September 2021, Williams enrolls in an interactive media management program at Algonquin College with the assistance of Ontario’s Second Career program.
• In the spring of 2022, Williams secures new employment as a part-time teacher at a Japanese school and as a coordinator for commercial training with Canadian North/Bradley Air Services Limited.

The Court’s Decision

The Ontario Superior Court of Justice ruled that Williams did make a reasonable effort to find new work following her dismissal in May 2020 and was entitled to 24 months of severance pay.

As a result, she was awarded $132,772.33 in compensation.

Justice Robyn M. Ryan Bell added that Williams is also entitled to:

• Payments she would have received through Air Canada’s annual incentive and profit-sharing plans for fiscal 2021
• Damages representing pension contributions during the 24-month reasonable notice period

Duty to Mitigate

Air Canada asked the court to reduce the notice period from 24 months to 12 months — arguing that Williams didn’t reasonably fulfill her duty to mitigate following her dismissal.

The airline claimed that Williams:

• Restricted her job search to Ottawa
• Delayed applying for alternate employment
• Only applied to 17 jobs between June 2020 and July 2021
• Didn’t ask about income replacement benefits
• Acted unreasonably when deciding to pursue a new career

Despite the reasons given by Air Canada, the court found that Williams did make a reasonable effort to find new work.

Justice Bell noted that she provided detailed evidence of the steps she took to find a new job.

Williams attended educational programs and seminars, participated in career counselling, set up job alerts, and prepared her resume — something she didn’t have to do more than two decades.

The court also found that the COVID-19 pandemic hampered her ability to secure new employment following her dismissal.

SEE ALSO
• Crimp Circuit worker didn’t seek new work following wrongful dismissal
• Can I get my job back if I am fired?

Key lessons for employees

• You have to look for a new job after you are fired: If you don’t make a reasonable effort to find comparable employment after you are terminated or let go, it can affect the amount of severance pay you are ultimately owed. As you begin the the job hunt, document your efforts to find work in a similar position or field. Since Williams kept a detailed record of the steps she took to find new employment after she was dismissed by Air Canada, the airline was unsuccessful in reducing her severance entitlements by half.
• Don’t accept any severance offer until you speak with an employment lawyer: Employers in Ontario can’t legally force non-unionized workers to accept a severance offer immediately. These offers can sometimes include a termination clause that tries to limit the amount of severance pay you can receive or a non-compete clause that prevents you from pursuing employment elsewhere in your industry. Once you receive a severance offer from your company, don’t sign it until you speak with an experienced employment lawyer at Samfiru Tumarkin LLP. As long as you didn’t accept it, you have two years from the date of your dismissal to pursue full severance pay.

Key lesson for employers

• Consult an employment lawyer before firing non-unionized staff: Each employment matter is unique. Companies in Ontario should always speak with an employment lawyer, like the ones at Samfiru Tumarkin LLP, before terminating a non-unionized employee with or without cause. Rather than resolve dismissals in court, a thorough review by our team will ensure that laws aren’t being broken and that the employee’s rights have been taken into account.

Lost your job? Speak with an employment lawyer

If you are fired or let go for any reason in Ontario, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Toronto and Ottawa, representing clients across Ontario, can review your situation, enforce your workplace rights, and ensure that you receive the compensation you are owed.