Ontario Court Awards 65-Year-Old Employee 26 Months’ Pay

A 65-year-old employee was awarded 26 months’ salary in a wrongful dismissal case against Clean Harbors, an environmental services company, following his termination after 40 years of service. Ibrahim Panchbhaya, who immigrated from India to Canada in 1983, had been employed as a laboratory manager when the company’s facility closed in November 2023. Despite receiving only the minimum severance under the Employment Standards Act, Panchbhaya took legal action to seek damages for wrongful dismissal.

In a summary judgment motion presided over by Justice Koehnen of the Superior Court of Justice, the court examined the arguments presented by both Panchbhaya and the company regarding notice periods and mitigation efforts. The court acknowledged Panchbhaya’s extensive experience, noting that he had dedicated his entire career in Canada to Clean Harbors.

The court highlighted the challenges he might face in finding comparable employment at his age, particularly given his specialized skills in the liquid chemical market. Justice Koehnen recognized that Panchbhaya had applied for 103 jobs after his termination, yet Clean Harbors criticized his efforts, claiming they were “manifestly minimal” due to a brief period of inactivity.

In a decisive ruling, Justice Koehnen rejected the company’s claims, pointing out that Clean Harbors did not provide any support such as outplacement counselling or a reference letter to assist Panchbhaya in his job search. The judge stated, “It is somewhat ironic that the defendant attacks the plaintiff for an alleged lack of mitigation when the defendant itself did nothing to assist the plaintiff in his job search.”

Given the circumstances of Panchbhaya’s age, length of service, and specialized experience, the court awarded him 26 months of notice, which included his salary, pension contributions, and monthly benefit contributions. While Ontario typically caps wrongful dismissal damages at 24 months, the judge deemed Panchbhaya’s case to involve exceptional circumstances that warranted a higher payout.

Panchbhaya’s lengthy tenure with Clean Harbors not only reflects his loyalty but also underscores the significance of long-term employment relationships. The court’s decision recognizes the inherent value of such commitment, particularly for employees who have built their entire social and professional networks around a singular workplace.

In an era where loyalty to a single employer is increasingly rare, cases like Panchbhaya’s serve to highlight the importance of long-serving employees. Such individuals often act as invaluable resources within their organizations, possessing extensive knowledge and a deep understanding of company practices.

The ruling also raises broader questions about how businesses should support their employees during transitions. Companies that foster loyalty among their workforce can benefit from the stability and expertise that long-term employees provide, making it essential for employers to offer adequate support when terminations occur.

This case not only affirms the rights of employees but also reinforces the notion that long-standing dedication should be recognized and rewarded, whether at the time of departure or through legal means when necessary.