Age, importance of position and scarcity of similar jobs in the area made reasonable notice equal to the time it took to find a new job
A New Brunswick man is entitled to double the pay in lieu of notice he received after being dismissed because he was in an important managerial position, even if only for slightly more than three years, according to the New Brunswick Court of Queen’s Bench.
Glenn Ladd, 56, was the general manager of consumer electronics for Fredericton, N.B.-based Cox Radio and TV. He managed 39 employees spread over different locations and was in charge of the purchasing and pricing of consumer electronics for the business. He was employed with Cox Radio for a little more than three years but had 30 years of experience in similar jobs with other companies. During that time, he had also worked for a financial planning organization.
After slightly more than three years with Cox Radio, Ladd was told his position was being eliminated. He was dismissed immediately and given 10 weeks’ pay in lieu of notice, including a pro-rated bonus.
Ladd began looking for a new job but couldn’t find anything with a similar role and salary in the area. After about five months, he finally found a position, though it was in Nova Scotia. He accepted the job, but filed a claim against Cox Radio for inadequate notice. Given the scarcity of similar jobs, Ladd claimed he was entitled to notice equal to the period it took him to find a new job, or 20 weeks.
The court found Ladd’s position at Cox Radio required a certain level of specialization in consumer electronics, though it was uncommon. It also said he had some experience in other areas, which presented the possibility of finding work in those areas. However, Ladd was in his 50s and his position with Cox Radio was a responsible management position with a salary in the $70,000-per-year range. Finding a job with similar responsibilities and pay would be very difficult, the court found, as proven when he had to relocate to Nova Scotia.
The court said the 10 weeks’ pay Cox Radio gave Ladd was slightly less than the “old rule of thumb of a month a year but it is still fair and realistic” for his service time. However, given his job responsibilities, salary, age and experience, it said he was entitled to more.
