"Without Cause Terminations" And A Possible "Duty Of Reasonable Exercise Of Discretionary Powers"

In the fall of 2015, Madam Justice Yungwirth of the Alberta Court of Queen's Bench penned a decision that caused employers to take notice. In Styles v Alberta Investment Management Corporation, Justice Yungwirth built upon the Supreme Court of Canada's decision in Bhasin v Hrynew to introduce what the court referred to as a "common law duty of reasonable exercise of discretionary contractual power". In doing so, the court cast doubt on the enforceability of clauses in employment documents which purport to restrict the payment of bonuses to "active" employees only. The decision also raised a host of questions regarding deferred compensation plans, as well as "without cause" terminations more generally.