The respondent was employed as President and CEO of the appellant's television division under a fixed-term employment agreement expiring October 31, 2011.
The agreement provided for a two-year severance payment and a six-month paid sabbatical upon expiry.
When the contract expired, the parties continued negotiations for a new agreement but could not reach consensus.
The appellant refused to pay the severance or arrange the sabbatical, claiming the respondent had waived these entitlements.
The appellant subsequently terminated the respondent's employment with eight months' notice and a two-month severance package.
The respondent obtained summary judgment for breach of contract, recovering damages for the two-year severance payment and payment in lieu of the sabbatical.
On appeal, the appellant argued the respondent had waived the sabbatical entitlement and that the severance provision was invalid under the Employment Standards Act.
The Court of Appeal dismissed the appeal, finding no valid waiver and rejecting the argument that an inapplicable termination clause could void the severance entitlement.