Aug 2019 Charity & NFP Law Update
On June 19, 2019, the Court of Appeal for Ontario (the “Court”) released its decision in Dawe v The Equitable Life Insurance Company of Canada (“Dawe”), partially overturning the lower court’s decision that held that 30 months was an appropriate notice period for termination without cause for an employee with 37 years of service. In this case, the Court reiterated that reasonable common law termination notice periods for long serving employees should not exceed 24 months, in the absence of “exceptional circumstances.” The Court further held that the employer must honour the contracted-for bonus entitlements of the employee during the notice period, unless any subsequent changes in the terms of the employment contract have been brought to the attention of the employee. This Bulletin provides a review of the principles outlined by the Court in Dawe, which are relevant to charities and NFPs.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 454.