Court refuses to clawback wrongful dismissal award for employee on disability

Employer argued that allowing worker to collect disability benefits and wrongful dismissal damages amounted to getting paid twice for the same time
|Canadian Employment Law Today

Employers have argued that when an employee on disability is fired, any amount received from the disability plan during the notice period should be deducted from damages for wrongful dismissal.

After all, to allow an employee to collect disability benefits and be compensated for the notice period would mean the worker was getting paid twice for the same time — something known in legal circles as double recovery.

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