The appellant was constructively dismissed after approximately 14 years of employment during which the respondent's management systematically marginalized him.
The central issue was whether damages for breach of the implied term to provide reasonable notice encompassed a long term incentive plan payment that was triggered by the sale of the employer approximately 13 months after the appellant's departure.
The Court held that courts must apply a two-step analysis: first, whether but for the termination the employee would have been entitled to the bonus during the reasonable notice period; and second, whether the terms of the employment contract or bonus plan unambiguously limit or remove that common law right.
Applying this framework, the Court found that the Realization Event occurred within the reasonable notice period and that the LTIP's contractual terms did not unambiguously extinguish the appellant's common law entitlement to damages.
The Court further clarified that a breach of the duty of good faith in the manner of dismissal is a distinct contractual breach from the failure to provide reasonable notice and carries its own analytical framework.
