The respondent, a dental hygienist, was employed by the appellant dental practice for approximately 19 years.
The appellant required the respondent to sign successive employment agreements limiting her wrongful dismissal entitlements to the statutory minimum under the Employment Standards Act, 2000.
Upon termination without cause in December 2012, the respondent received only one week's salary.
The trial judge found the employment agreements unenforceable due to lack of consideration and awarded damages in lieu of reasonable notice at 15 months.
On appeal, the appellant argued that the respondent's 2005 resignation and subsequent re-hiring broke the chain of employment, limiting her entitlements to the statutory minimum measured from 2005.
The Court of Appeal allowed the appeal, finding that the 2005 resignation and re-hiring constituted a break in the employment relationship with new consideration, thereby limiting the respondent's entitlements to 7.5 weeks of statutory notice.