Ontario Severance

B. v. La-Z-Boy Canada Limited

2008 ONCA 464 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

B. v. La-Z-Boy: Employment Status & Notice Clause

Appeal history

Summary

This is an appeal to the Court of Appeal from a trial judge's decision in a wrongful dismissal action. The plaintiff was a commissioned sales agent who worked for the defendant furniture manufacturer for almost 23 years. The trial judge found that the plaintiff was an employee rather than an independent contractor and awarded him 20 months' notice. The Court of Appeal dismissed the employer's appeal, holding that the trial judge correctly assessed the control the employer exercised over the worker's activities. The court also held that a 60-day termination clause introduced during the employment relationship was void for lack of fresh consideration, meaning the 20-month notice award stands.

Outcome

employer's appeal dismissed; 20 months' notice upheld

Award

20 months' notice

Key Factors

  • employment status
  • independent contractor
  • termination clause
  • ESA compliance
  • consideration

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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.