Modern wrongful dismissal litigation continues to evolve beyond basic severance disputes, according to employment lawyers

A recent Ontario wrongful dismissal decision involving IBM Canada demonstrates how litigation strategy, equity compensation disputes, and contractual interpretation can significantly increase employer exposure during termination litigation.

The case, Adelman v. IBM Canada Limited, serves as an important reminder that wrongful dismissal claims can quickly evolve beyond severance disputes and into complex, high-cost litigation cases.

The employee, Jason Adelman, worked for IBM and its predecessor company for nearly 19 years before being terminated without cause in January 2023 at age 59.

At trial, the Ontario Superior Court awarded Adelman 24 months’ reasonable notice, citing several key factors, including:

• His senior executive position
• His lengthy service
• His age
• The challenging job market he faced following termination

The court also considered the employee’s mitigation efforts, noting that despite applying for more than 100 positions and participating in interviews, he was unable to secure comparable employment.

The damages award exceeded $682,000.

Equity compensation became a central issue

One of the most significant disputes involved IBM’s treatment of restricted stock units (RSUs) and stock options during the notice period.

IBM argued that the employee lost entitlement to certain equity compensation upon termination because he was no longer...

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