Ontario's Superior Court of Justice has issued a stark
reminder of the perils of fixed-term employment contracts. In
McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral
Home),1 released in July of this year, the Court
awarded nine years worth of wrongful dismissal damages to an
employee whose fixed-term contract was terminated early by the
employer.
Background
The employee, Grant McGuinty, was the former owner of the
McGuinty Funeral Home in North Bay. In 2012, he sold his
interest to a group of buyers for more than $1.8-million.
Among other things, the purchase agreement included a term
that Mr. McGuinty would enter into a Transitional Consulting
Services Agreement ("TCSA") pursuant to which he would
remain in the new owners' employ as their General Manager for a
period of 10 years. The TCSA provided that Mr. McGuinty would
earn an annual salary of $100,000 plus commissions, benefits
coverage, a company vehicle, gas reimbursement and a golf club
membership.
