Two employees of Canadian Imperial Bank of Commerce (CIBC) employed as Mobile Investment Consultants were terminated without cause due to a restructuring.
They sued for wrongful dismissal, claiming entitlement to damages in lieu of reasonable notice under common law.
The central issue was whether the termination provision in their employment contracts was enforceable or violated the Canada Labour Code.
The court found the termination provision unenforceable because the "For Cause" provision defined cause more broadly than the statutory definition of "just cause" under the Canada Labour Code, and the "Without Cause" provision's language permitting termination "at any time" was contrary to the statutory framework.
The court determined reasonable notice periods of seven months for one plaintiff and twelve months for the other, and awarded damages for salary, commissions, bonuses, and benefits during those periods.
