Jeremy Hann

The appellant employer appealed a summary judgment award of $310,040.88 in damages to its former employee, representing 19 months' pay in lieu of notice plus prejudgment interest and costs.

The motion judge had found the termination clause in the employment agreement unenforceable due to lack of consideration.

The Court of Appeal allowed the appeal, finding that the employer's offer of employment to the employee upon the sale of the business constituted valid consideration for the termination clause.

The court distinguished the case from precedents involving variations to a single employment relationship, emphasizing that a new contract with a new employer was formed upon the business sale.

The court remitted the action to trial to address remaining issues regarding ESA compliance and other arguments not previously decided.

The appellant employee accepted an offer of employment that did not contain a termination provision.

Nine months later, he signed an employment agreement limiting his termination entitlements to the minimums under the Employment Standards Act.

After being terminated without cause seven years later, he sued for wrongful dismissal and unpaid commissions.

The Court of Appeal held that the termination provision in the subsequent employment agreement was unenforceable for lack of fresh consideration, entitling the appellant to common law reasonable notice.

However, the Court upheld the trial judge's dismissal of the appellant's claims for commissions on a major account finalized after his termination, finding no error in the interpretation of the commission plan or the rejection of his unjust enrichment claim.