The defendant employer brought a motion for summary judgment seeking dismissal of a wrongful dismissal action, arguing that an employment agreement limiting termination compensation was enforceable.
The employee resisted the motion relying on the changed substratum doctrine, asserting that promotions and increased responsibilities had fundamentally altered the employment relationship and nullified the contractual notice limitation.
The court held that, although the doctrine had not been expressly pleaded, the pleadings and affidavit evidence raised the issue sufficiently for the purposes of the motion.
Applying the summary judgment framework, the court found that genuine issues requiring a trial existed regarding whether the employee’s responsibilities and status had materially changed.
The motion for summary judgment was dismissed and the action was permitted to proceed to trial.