In the second decision in a week in favour of upholding the
plain meaning of employment contracts, the Alberta Court of Appeal
affirmed that when an employment contract says that an
executive's termination pay will be "12 months
salary" and "salary" is carefully defined in the
contract, that that is binding and eliminates any right to
"reasonable notice". That is all the employee is entitled
to unless he has other separate contractual entitlements such as,
as he had in this case, long term incentive plan rights. Employment
contracts defining termination pay are binding as long as the
stated termination pay will always be greater than any statutory
minimums.
The Court of Appeal dismissed the Plaintiff's appeal in
Cornelson v. Alliance Pipeline Ltd., 2017 ABCA 13 today.
Counsel for the employer were
Don Dear, Q.C. and
Jamie Flanagan of McLennan Ross.
