The appellant, Guestlogix Inc., appealed a judgment that awarded the respondent, Marina Antchipalovskaia, twelve months' common law notice for wrongful dismissal.
The core issue was whether the motion judge erred in treating the respondent's employment as continuous from 2011 to 2019, despite a termination and re-hiring in 2016 during Companies’ Creditors Arrangement Act (CCAA) proceedings, which included a court-ordered release of prior claims.
The Court of Appeal found that the motion judge erred by not giving effect to the 2016 termination and the CCAA release.
However, the court also held that the respondent's prior five years of experience still provided a benefit to the appellant and should be considered in determining the notice period.
The Court of Appeal substituted the twelve-month notice period with a seven-month notice period, recognizing both the effect of the CCAA release and the value of the respondent's previous service.