The plaintiff, Paul Holmes, brought a motion for summary judgment for wrongful dismissal and breach of contract against Hatch Ltd. after 17 years of employment.
The core issue was the enforceability and interpretation of a termination provision in his employment contract, which stated that the termination package would "take into account your years of service, position and age" as a minimum, or such greater amount as required by statute.
The court found that Hatch Ltd. failed to provide sufficient credible evidence that it genuinely considered these common law factors when determining the termination package, instead relying solely on its interpretation of "contractual obligations" to provide only ESA minimums.
This failure constituted a fundamental breach and repudiation of the employment agreement, rendering the termination clause invalid.
Consequently, the plaintiff was entitled to common law reasonable notice, which the court determined to be 18 months.
Partial summary judgment was granted, declaring this entitlement, with the calculation of specific damages and mitigation issues to be addressed in future proceedings.