End of mandatory retirement pushing the ‘rough upper limit’ of 24 months’ notice

Given the aging population, more wrongful dismissal cases involving sympathetic, long-term employees will inevitably make their way to courts
By Kieran Moore
|Canadian Payroll Reporter|Last Updated: 07/11/2012

One of the inevitable results of an aging workforce and the abolishment of mandatory retirement at age 65 is that HR professionals will have to deal with more terminations of employees who have lengthy service records and lower re-employment prospects.

These employees will be entitled to maximum reasonable notice periods.

Traditionally, Canadian courts have imposed a “rough upper limit” — also known as a “cap of reasonableness” —which imposed a 24 month ceiling on damages in lieu of notice (not including damages for improper acts in the manner of dismissal).