Fixed Term Contracts: How Two Weeks' Pay Became Over 27 Months Wages

The Ontario Court of Appeal has awarded a sales manager who had less than 2 years' service but was on a fixed term contract, over 27 months' wages as a result of a termination of his employment without cause. This decision highlights the importance for employers of careful drafting when entering into an employment contract.

In the case of Howard v. Benson Group Inc., the employer had entered into a five-year fixed term contract with an employee to be a Sales Development Manager. The period of employment commenced in September 2012. The employer terminated the employee's employment in July 2014, almost two years into the contract. The employee was 57 years old and earned a base salary of $60,000 per year, plus benefits at the time that his employment was terminated.