Bottom Line
In a recent decision, the Court of Appeal for
Ontario upheld the lower court s decision awarding a former
employee over $1.274 million as a result of the employer
unilaterally imposing a number of changes to the terms of
employment. The employment relationship was governed by a 10-year
fixed term contract with no termination provision. This is one of
the highest damage awards ever issued in a Canadian wrongful
dismissal case. It serves as a stark reminder to employers that
using fixed-term contracts can be extremely costly if they are not
carefully and properly drafted.
Background
The respondent, Grant McGuinty, sold his family s funeral