Supreme Court awards nearly $1 million after contract deemed unenforceable
The Supreme Court of British Columbia recently dealt with a wrongful dismissal case involving a long-serving salesperson who challenged his termination without cause after 17 years of employment.
The worker argued that his employer's termination clause was unenforceable and sought damages representing both his base salary and substantial commission earnings during the notice period.
The worker also claimed that his former employer breached its duty of good faith by making baseless allegations against him in its legal pleadings. These allegations allegedly hindered his ability to find new employment and caused him significant emotional distress.
With annual earnings that averaged over $650,000, mostly from commissions, the worker sought damages for pay in lieu of reasonable notice, unpaid vacation pay, and additional compensation for the mental distress he suffered as a result of his employer's conduct.
The worker was employed as a salesperson in the equipment leasing business from 2005 until 2022. He generated substantial revenue, bringing in more than $15 million in originating leases annually and earning his employer end-of-lease profits that often exceeded $1 million per year.
His remuneration included a $100,000 base salary plus commissions. The commission structure included "front-end" payments based on new equipment leases and "back-end" payments...
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