Last April, we wrote about an interesting decision from the Ontario Superior Court concerning when the limitations period begins to run for claims of wrongful dismissal and statutory severance pay. In that case, the Court held that the limitation period to claim unpaid statutory severance pay commences as soon as working notice of dismissal is issued to an employee.
It is pretty rare that an employee will receive a severance package worth more than 2-years of their salary. In fact, it is generally agreed that there is an informal '24 month cap' on the amount of pay that a dismissed employee will receive in severance.
That said, there are exceptions to every rule. A recent case from the Ontario Superior Court of Justice, Markoulakis v. SNC Lavalin Inc., illustrates what circumstances may produce a severance entitlement above the 24-month cap.