Highlights of Noteworthy Decisions

Decision 820 19
R. Woodrow
  • Deductions (severance pay)
  • Loss of earnings {LOE} (termination of employment)

The worker suffered a left elbow injury in June 2007, for which the Board granted the worker a 5% NEL award. In Decision No. 2421/12I, the Tribunal found that the worker had a permanent psychotraumatic disability. In Decision No. 2421/12, the Tribunal found that the worker was entitled to reassessment of the organic award to include loss of grip and pinch strength. The Board then increased the organic award to 11% and rated the psychotraumatic disability at 15%, which were combined for a 24% NEL award. In Decision No. 490/15, the Tribunal found that the worker was entitled to full LOE benefits.

In implementing Decision No. 490/15, the Board noted that the worker's employment was terminated in 2011, and that the worker received about $9,000 for termination pay in lieu of notice, covering the period from January to March 2011. The worker received full LOE benefits during this period. The Board considered the termination pay to be salary, and offset the LOE benefits by the termination pay.
The worker appealed a decision of the Appeals Resolution Officer regarding the termination pay.
The Vice-Chair agreed with Decisions No. 202/14 and 569/18, and found that the termination pay did not constitute earnings and could not be used to deny LOE benefits during an overlapping period.
The appeal was allowed.