Ontario Budget 2016

On February 25, 2016, the Ontario government tabled its 2016 Budget “Jobs for Today and Tomorrow” (“Budget”) and the corresponding Budget Bill, Bill 173, Jobs for Today and Tomorrow Act (Budget Measures), 2016 (“Bill 173”). In this FTR Now, we highlight some of the key proposals that are of particular interest to employers, human resources…

Court Considers Deductibility of STD/LTD Benefits from Notice Award

The Ontario Superior Court recently considered the deductibility of short term disability (“STD”) and long-term disability (“LTD”) benefits from a notice award. It concluded that STD benefits could be deducted because the benefits were provided as salary continuance, the plaintiff had not contributed directly to their cost and the cost was absorbed by the employer…

Employer Permitted to Define “Spouse” under Benefit Plan to Exclude Married but Separated Spouses

In a recent decision of the Ontario Human Rights Tribunal (“Tribunal”) in VanderLinde v. Oshawa (City)  (“VanderLinde”), the Tribunal found that it is not discriminatory for an employer to require that an employee’s legally married spouse be living with the employee as a condition of eligibility as a spouse under its group benefit plan. In…

Supreme Court of Canada Speaks on the Deductibility of Income Replacement Benefits from Wrongful Dismissal Damages

The Supreme Court of Canada has provided some much needed clarity to the issue of the deductibility of income replacement benefits from wrongful dismissal damages in its long-awaited decision, IBM Canada Ltd. v. Waterman (“Waterman“). Justice Cromwell, writing for the majority of the Court, dealt with the deductibility of pension benefit payments in particular. Ultimately,…

Supreme Court of Canada Provides Clarity to the Deductibility of Income Replacement Benefits from Wrongful Dismissal Damages

The Supreme Court of Canada has provided some much needed clarity to the issue of the deductibility of income replacement benefits from wrongful dismissal damages in its long-awaited decision, IBM Canada Ltd. v. Waterman (“Waterman”). Justice Cromwell, writing for the majority of the Court, dealt with the deductibility of pension benefit payments in particular. Ultimately,…

Significant Punitive Damages Awarded by Saskatchewan Court

In the recent case Branco v. American Home Assurance Company, the Court of Queen’s Bench for Saskatchewan ordered $4.5 million in punitive damages against two insurance companies arising from what the court found to be their “cruel and malicious acts” against an injured worker. The case involved a worker who was injured on the job…

2012 Federal Budget – Highlights For Employers

On March 29, 2012, the federal government tabled its 2012 Budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity. As widely anticipated, the Budget alters the retirement landscape for many Canadians and announces cost-cutting measures and reform of the federal public service. It also proposes certain tax reform measures, and…

The Drummond Report – Impact on the Broader Public Sector

On February 15, 2012, the Commission on the Reform of Ontario’s Public Services (the “Commission”) released its long-awaited, 543-page report (the “Report”, commonly referred to as the “Drummond Report”) which identifies sweeping reform measures aimed at increasing efficiencies within the broader public service (“BPS”). In our companion FTR Now, Drummond Commission Reports on Elementary and…

Scholarships for Adult Children – Not a Taxable Employee Benefit

INTRODUCTION In a trio of cases dated March 7, 2008, the Tax Court of Canada allowed three taxpayers’ appeals regarding the taxation of employer-paid amounts awarded to the taxpayers’ adult children in respect of post-secondary tuition. In Dimaria v. The Queen, Bartley v. The Queen, and Okonski v. The Queen, the Court rejected Canada Revenue…