Employer forgot to have new vice-president sign contract with termination clause
An Ontario company that forgot to have an employee sign a standard employment contract cannot hold the employee to its standard termination notice, the Ontario Superior Court of Justice has ruled.
Daniel Harvey, 44, was president of a food services company in Quebec when he was hired by Shoeless Joe’s to be its vice-president, operations. To take the job, Harvey had to relocate to Toronto, where the head office was located. Shoeless Joe’s gave him an offer of employment with a salary, car allowance, health benefits and annual bonus. The offer didn’t have any provisions for notice of termination, nor were any discussed.
Harvey began his new job on Feb. 2, 2009, without signing an employment contract. The company had a standard employment agreement for senior employees that contained a termination provision allowing the statutory minimum of notice, but it neglected to give it to Harvey. However, the company’s president was under the impression Harvey had signed such a contract.
During the first few months of his employment, Harvey received positive feedback from his immediate superior, the company’s chief operating officer. He didn’t receive any indication that Shoeless Joe’s had any problems with his work. However, on July 21, 2009, he was told his employment was being terminated because his “performance was inconsistent with our expectations.” The company told him his “trial period” of five-and-a-half months was over because it expected more from him.
Shoeless Joe’s paid Harvey one week’s pay in lieu of notice and continued his benefits for one week, as stipulated under its standard employment contract. Harvey tried to obtain a copy of the employment contract the company used, but wasn’t given one.
The court partially agreed with the employer’s argument that Harvey’s short length of service limited his notice entitlement. However, it disagreed that it should be the statutory minimum. It noted his job was at a senior level with important responsibilities and there was a limited availability of similar work. The fact he relocated to Toronto from Quebec to take the job was also a factor.
