In September 2022, the Ontario Court of Appeal in Pavlov v. The New Zealand and Australian Lamb Company Limited (“Pavlov“) confirmed that an employer may be liable for a longer notice period, even for a short-term employee, based on prevailing economic factors beyond the parties’ control. In this case, it was COVID-19.
Background
Phillip Pavlov was hired by The New Zealand and Australian Lamb Company Limited (“NZAL Co.”) as their Director of Marketing and Communication on June 12, 2017. Pavlov’s employment was terminated on May 28, 2020. As a result, Pavlov brought an action for damages for alleged wrongful dismissal. Given that NZAL Co. did not argue that this was a termination for just cause, which would not have required notice, the main issue centred around the reasonable notice period, or pay in lieu thereof, that Pavlov was entitled to.
