In Wronko1, the Ontario Court of Appeal
determined that an employee was not bound by two years' notice
of a fundamental change to his terms of employment.
The decision was based on the specific facts and the ongoing
interaction of employee and employer. The employee was an executive
with 17 years service who had negotiated an employment contract
with the president of the employer that provided two years'
salary on termination. A new president was appointed who attempted
to reduce the termination entitlement from two years' pay to 30
weeks' pay. The employee objected to the change and, on several
occasions, refused to sign an amended contract. Two years'
notice of a change to the termination entitlement was given. After
expiry of the two years' notice, the employee was again asked
to sign an amended contract and it was noted that if the employee
did not accept the amended terms "we do not have a job for
you".
