The Court of Appeal reduced a 30-month notice period to 24 months but upheld the employee's common law entitlement to bonus payments because the employer failed to communicate a restrictive termination provision.
A senior vice president with 37 years of service was terminated without cause following a minor dispute over promotional sporting event tickets.
The motion judge awarded 30 months' notice and full bonus entitlements during the notice period.
On appeal, the employer challenged both the notice period and the bonus entitlement.
The Court of Appeal reduced the notice period to 24 months, finding no exceptional circumstances warranting a longer period.
However, the court upheld the bonus entitlement, finding that while the termination provision in the bonus plans was unambiguous and would have limited the employee's entitlement, the provision was unenforceable because it was not properly communicated to the employee by the employer.
Michael Dawe v. The Equitable Life Insurance Company of Canada, 2019 ONCA 512