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.