On October 9, 2020, the Supreme Court of Canada
("SCC") decided in Matthews v Ocean
Nutrition Ltd. 1 , that a dismissed employee
while still in their termination period is entitled their
employment bonus.
Background
In 1997, David Matthews began his employment with Ocean
Nutrition Canada Limited ("Company") as a chemist and
went on to hold various senior executive roles in the organization
until his resignation in June of 2011.
Matthews was eligible to participate in the Company's Long
Term Incentive Plan (LTIP). Under the program, a "Realization
Event", such as the sale of the Company, would trigger
payments to participating employees.
The relationship soured, and ultimately Matthews left the
Company. He did not allege constructive dismissal at the time of
his departure.
