Ontario Severance

M. v. Royal Bank of Canada

2019 ONCA 609 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

Appeal on Incentive Plan Damages During 18 Months' Notice

Appeal history

Summary

This is an appeal to the Court of Appeal from a trial judge's decision regarding a dismissed employee's entitlement to incentive plan compensation. The employee was dismissed without cause, and the trial judge awarded 18 months' notice, $953,392.50 for lost opportunity under a carried interest plan, and $190,789.00 based on a foreign exchange methodology. The employer appealed the two incentive plan awards. The Court of Appeal allowed the appeal in part, setting aside the $953,392.50 award because the plan's terms clearly allowed the employer to terminate it, meaning the employee had no right to future uncreated funds. The court upheld the 18 months' notice and the $190,789.00 award because the plan was silent on foreign exchange risks.

Outcome

appeal allowed in part; $953,392.50 award set aside

Award

18 months’ notice; $190,789.00 in respect of Mr. M.’s share of investment proceeds upheld; $953,392.50 in respect of the lost opportunity to earn entitlements set aside

Key Factors

  • wrongful dismissal
  • incentive compensation
  • reasonable notice
  • damages assessment
  • plan termination

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More Ontario employment decisions from 2019

This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.