The appellants, commissioned sales representatives, were presented with a new employment contract by their employer, LICC, which reduced commissions and introduced minimum production levels.
When the appellants refused to sign the new agreement, LICC terminated their employment.
The trial judge dismissed their wrongful dismissal action, finding they breached their contract by refusing to acknowledge LICC's managerial authority to change the commission plan.
The Court of Appeal allowed the appeal, holding that the appellants were employees, not independent contractors, and were entitled to reasonable notice of termination.
The Court found that the appellants had no obligation to accept the new agreement or acknowledge the employer's right to make unilateral changes, and their refusal did not constitute just cause for dismissal.
The Court also held that the employer failed to meet its burden of proving the appellants failed to mitigate their damages.