In Felice v. Cardinal Health Canada Inc., 2014 ONSC 1190, a senior executive was awarded damages of 12 months' salary and benefits after a total of only 19 months' employment with the hiring company and its successor. He was initially hired under an employment contract that entitled him to 12 months' salary upon termination without cause.
When the company was taken over, he signed a new employment agreement that was silent on severance. At the time of his termination without cause, the employee occupied a senior management position and was 52 years of age. He remained unemployed 14 months after the termination.
The trial judge held that the new contract replaced, and did not amend, the original agreement, limiting the employee to reasonable notice of termination. However reasonable notice was the same as that provided for in the original contract having regard to the factors relevant to making that determination. The employee was entitled to 12 months' pay in lieu of notice.
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
