On November 29, 2022, the British Columbia Court of Appeal released Yates v. Langley Motor Sport Centre Ltd., in which the Court of Appeal ruled that payments received by an employee under the Canada Emergency Response Benefit (CERB) should not be deducted from wrongful dismissal damages.

The Court of Appeal held that broader policy considerations, including the desirability of equal treatment and promotion of socially desirable conduct, as well as the purpose of the CERB program supported the conclusion that CERB payments should not be deducted from wrongful dismissal damages. The Court of Appeal did, however, uphold the British Columbia Supreme Court’s refusal to award punitive damages.

Background

The appellant, Shelby Yates, worked for Langley Motor Sport Center Ltd. (Langley Hyundai) as a marketing manager and event coordinator. Ms. Yates was placed on a temporary layoff effective March 24, 2020 as a result of the COVID-19 pandemic. Her layoff period was extended until it expired on August 30, 2020. Under the British Columbia Employment Standards Act (ESA), her termination date was deemed to be retroactive to the start of the layoff period (i.e., March 24, 2020).

Ms. Yates received CERB during the layoff period. She brought a civil claim against Langley Hyundai, seeking wrongful dismissal damages, as well as aggravated and punitive damages. The British Columbia Supreme Court awarded Ms. Yates five months of common law reasonable notice, but denied her aggravated and...

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