On appeal from a summary judgment order in a wrongful dismissal action, the Court of Appeal considered whether an employee's pre-acquisition service could be waived for purposes of calculating statutory termination and severance pay under the Employment Standards Act.
The employee was hired in 1980 by Bakermet, became a one-third owner, and received $17.16 million when the company was sold to ArcelorMittal in 2008.
He continued employment under successive fixed-term agreements until termination in 2015 at age 58.
The motion judge found the employee had waived pre-2008 service and was limited to six months' notice under the 2014 employment agreement.
The Court of Appeal reversed, holding that statutory entitlements cannot be waived, that the termination clause violated the Employment Standards Act, and that the employee was employed on an indefinite basis despite fixed-term language.
The court also rejected the employer's counterclaim for breach of restrictive covenants and fiduciary duties.
