Pension plans and notice periods

Worker awarded more than $330,000 in pension benefits, courts seem settled on notion that notice period counts as service for pension purposes
By Stuart Rudner
|Canadian Employment Law Today

Typically, the determination of what is owed to an employee at the time of termination is a fairly straight-forward calculation of lost salary, with perhaps some amount to compensate for the loss of employment-related benefits.

Pension benefits are often not considered in any detail. In some cases, however, the reality is that the loss of pension benefits that occurs due to termination can have a dollar value far greater than the loss of salary. In such cases, the employer may end up on the hook for far more than it bargained for when it made the decision to terminate the employment relationship.