Paquette v. TeraGo Networks Inc.

2016 ONCA 618 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

Wrongful Dismissal: Bonus Damages During 17-Month Notice

Summary

The Court of Appeal for Ontario heard an appeal regarding a wrongful dismissal claim where the employee was terminated without cause. The central issue was whether the employee was entitled to damages for lost bonuses during the reasonable notice period, specifically examining whether an 'active employment' condition in the bonus plan effectively limited common law rights. The court held that the clause was insufficient to restrict these rights and awarded damages for bonuses the employee would have earned during the 17-month notice period.

Outcome

appeal allowed

Award

Damages awarded for bonuses employee would have earned during 17-month notice period

Key Factors

  • wrongful dismissal
  • reasonable notice
  • bonus damages
  • active employment clause
  • common law rights

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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.