Substratum What Now?! Employee Promotions May Undermine Your Written Contracts

In Celestini v Shoplogix Inc.,¹ the Ontario Court of Appeal (ONCA) held that if an employer fundamentally and substantially expands an employee's duties and responsibilities, it may no longer be able to rely on the employee's written contract – even if the employee's title remains unchanged.

Background

In 2005, Mr. Celestini commenced employment with Shoplogix as its Chief Technology Officer (CTO). He signed an employment contract that limited his entitlements upon dismissal without cause to 12 months of base salary and benefits, plus a pro-rated bonus to the date of termination. As CTO, Mr. Celestini initially focussed on transferring product and corporate knowledge within Shoplogix.