In Nader v. University Health Network, 2022 ONSC 447, the court examined the language of a secondment agreement and concluded that the plaintiff-employee was not a fixed-term employee of the organization to which he was seconded. The agreement at issue explicitly confirmed that the employee would remain an employee of the assignor/employer at all times. Accordingly, the employee could not “double collect” damages for the termination of both the employment agreement and the secondment agreement. He was entitled only to the 12 months’ damages specified in his employment agreement, and not to salary and related compensation for the balance of the term outstanding under the secondment agreement at the time of termination.
Background
The employee commenced employment with University Health Network (UHN) as executive vice president in 2016. He entered into an employment agreement under which he received a base salary, benefits and a performance bonus (Employment Agreement). The indefinite-term Employment Agreement included the following clause pertaining to termination without cause:
(UHN) may terminate your employment, other than for just cause, at any time upon payment to you of an amount equal to 12-months’ salary, which includes all your entitlement pursuant to the Employment Standards Act. It is expected that if you elect to terminate your employment with UHN, you will provide two months prior written notice, which notice may be waived by UHN at its discretion.
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