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ARTICLE · 29 JUNE 2023

How Binding Is Your Term Sheet? A Cautionary Tale For Employers

McMillan LLP
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A recent decision issued by Ontario's Superior Court of Justice – Giacomodonato v PearTree Securities Inc. ("Giacomodonato")[1] – is a cautionary tale for employers that use so-called "term sheets"...

CanadaEmployment and HR
Paul Boshyk
Paul Boshyk
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A recent decision issued by Ontario's Superior Court of Justice – Giacomodonato v PearTree Securities Inc. ("Giacomodonato")1 – is a cautionary tale for employers that use so-called "term sheets" when negotiating terms and conditions of employment with prospective new hires.

Background

In 2016, David Donato was recruited to join PearTree in order to serve as its President and Co-Head of Banking. The sequence of events leading to Mr. Donato's hiring was as follows:

  • In March 2016, PearTree sent Mr. Donato an initial draft of a document that the parties referred to as the "March Term Sheet". Among other things, the March Term Sheet contemplated that:

    1. Mr. Donato would be a full-time employee for a fixed-term of two years, commencing May 2, 2016.

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

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