Bad faith: lessons from Oracle Canada decision and best practices for employers
The issue of bad faith damages in Canadian employment law was once again in the spotlight after the recent court decision Carroll v. Oracle Canada ULC.
The case saw a senior sales executive awarded $624,000 — including $520,000 for commissions owed and $57,000 in punitive damages.
It highlights the significant risks employers face when statutory entitlements are withheld or when termination is handled in a manner deemed unfair or high-handed by the courts.
It seems like with every passing year, the courts are becoming more employee-friendly and recognizing the more vulnerable position that employees face at the time of termination — even high-earning and “sophisticated employees” like the individual in this case, says Jeff Rochwerg, associate at Turnpenney Milnes in Toronto.
“So, it's incumbent on employers to make sure that they are getting advice about terminations, what might be a risky termination, and ensuring that they are complying with all of their legal obligations with respect to payments owing to the employee within specific timelines — and not withholding owed amounts as a negotiating tactic.”
Steven Carroll began working at Oracle in November 2019 and was terminated without cause on June 30, 2023, as part of a corporate restructuring.
His compensation included a base salary of $180,000 and substantial commissions. In 2021 and 2022,...
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