In this case, as in other recent OCA cases, the Court is giving greater emphasis to the contractual language of the various bonus and commission plans as opposed to the principles of interpretation generally applied to employment contracts as set out in the seminal case of Wood v Fred Deeley.
In Canada, employers can dismiss employees in one of two ways: with cause or without cause. If an employer dismisses an employee without cause, and then later discovers that they had been stealing from the company for years, can they now allege just cause for dismissal?
The concept of frustration of contract continues to frustrate employers as we enter the year 2016. Unfortunately, many employers confuse their own frustration with absent employees with frustration at law.