The changed substratum doctrine prevents an employee's
entitlement to common law reasonable notice from being restricted
by the express terms of a historical written contract when the
duties and responsibilities of an employee increased substantially
and fundamentally over the course of employment.
In Celestini v. Shoplogix Inc., the
Court of Appeal for Ontario found that the changed substratum
doctrine applied to the dismissal of Mr. Celestini, the CTO of
Shoplogix. This finding had implications for Mr. Celestini's
entitlements to reasonable notice and loss of bonus damages. This
decision provides more insight into when the changed substratum
doctrine applies, as well as steps employers can take to avoid the
doctrine in the future.
