| Issue: |
Sub-Issue 1: |
Sub-Issue 2: |
Sub-Issue 3: |
| earnings |
Monies By Reason of Separation |
settled a grievance |
|
Summary:
While receiving benefits, the claimant settled a grievance with her former employer. In the settlement agreement, she agreed to resign and waive a number of rights, and the employer agreed to pay her $12,000. The Commission allocated those monies as earnings, which resulted in an overpayment of $1,536. The BOR and, in turn, the Umpire misinterpreted the law stated in Plasse and Meechan. The legal principle to be taken from these authorities was succinctly stated in he decision of this Court in Attorney General of Canada v. Cantin. There, the Court stated that, in federal law, the right to reinstatement is an employee's right to resume his or her position following a wrongful dismissal. In such circumstances, compensation to relinquish the right to reinstatement following a wrongful dismissal does not constitute earnings within the meaning of the Act and the Regulations. However, wrongful dismissal is a prerequisite to a right to reinstatement. This is not the case here. The claimant filed a grievance with respect to the employer's refusal to pay benefits under the STIP plan and she received settlement monies.
