Sarah Bauer

This is a costs endorsement following the Court of Appeal's decision on an appeal of a wrongful dismissal case.

The appellant insurance company sought to reduce the respondent employee's damages by challenging the reasonable notice period and bonus entitlements.

The Court of Appeal allowed the appeal in part, reducing the notice period but dismissing other arguments.

The respondent sought clarification on bonus entitlements and the parties exchanged submissions on costs.

The Court declined to entertain new arguments raised by the appellant at the costs stage and awarded costs to the respondent.

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.