An employee in Ontario was awarded bonus payments for the applicable reasonable notice period following a without cause termination despite the bonus plan’s express terms that personal and company objectives must be met and the employee must be actively employed.
A new decision from the Ontario Court of Appeal shows the potential downside of fixed term employment contracts for employers and the importance of proper drafting.
There is no shortage of cases which confirm the perils of assuming that an employer’s liability for reasonable notice of termination will be capped at one month per year of employment.
The Alberta Court of Queen’s Bench recently addressed the enforceability of restrictive covenants: Non-competition and non-solicitation clauses in Specialized Property Evaluation Control Services Ltd. V. Les Evaluations Marc Bourret Appraisals Inc., 2016
There continues to be a seemingly never-ending stream of cases which confirm the perils of assuming that an employer’s liability for reasonable notice of termination will be capped at one month per year of employment.
Employee salaries and benefits can be some of the greatest costs borne by a business. As a result, when a company faces financial hardship, they will often terminate positions to reduce their costs.
In the absence of an employment agreement that expressly sets out a notice period upon termination, employees who are terminated without just cause are entitled to a notice period or pay in lieu of notice from their employers in accordance with the common law.
The distinction between an employee and independent contractor is not always clear as can be seen in the recent decision of Tetra Consulting v Continental Bank et al., 2015 ONSC 4610.
The dismissal of a long-term employee who is entitled to common law reasonable notice can result in significant liability for an employer. As the determination of the appropriate notice period is contextual, it can be difficult for an employer to accurately assess their potential liability.
The employee, Ms. Steel (“Steel”), made a summary judgment application to the Supreme Court of British Columbia (“BCSC”) for damages for wrongful dismissal from her employment with Coast Capital Savings Credit Union (the “Employer”).