Summary

In Contardi v. Grand Cheese, 2026 ONSC 4045 (“Contardi”), the Ontario Superior Court of Justice awarded a long-service executive 27 months’ pay in lieu of reasonable notice following a finding that he had been constructively dismissed.  The defendants failed to defend the proceeding and were noted in default.  A motion seeking default judgement then proceeded by way of writing.

While courts generally regard 24 months as the upper end of the reasonable notice range, Contardi serves as a reminder that the ceiling is not absolute. In exceptional circumstances, including where an employee has lengthy service, occupies a senior position, and may face challenges in securing comparable employment, courts may award notice beyond 24 months.

Facts

The plaintiff was a 49-year-old Vice-President of Retail and Wholesale with approximately 35 years of service. He alleged that the defendants unilaterally removed his workplace access, disconnected his remote access, withheld wages, discontinued benefits, and failed to provide notice of termination or statutory entitlements. As noted, the defendants did not defend the action and were noted in default.

The Decision

The Court held that the deemed admissions in the Statement of Claim and subsequent affidavit evidence established constructive dismissal. The defendants’ alleged conduct, including restricting the plaintiff’s access to the workplace and systems, withholding wages, and discontinuing benefits, amounted to unilateral changes to fundamental terms of employment. The Court concluded that, viewed cumulatively, those steps demonstrated that the defendants no longer intended to be bound by the employment contract.

In determining an appropriate common law notice period, the Court considered the plaintiff’s age, approximately 35 years of service, senior executive position, compensation, and prospects of obtaining comparable employment. Although Ontario courts generally regard 24 months as the upper end of the reasonable notice range, the Court concluded that these factors justified an exceptional award of 27 months’ notice.

However, the Court declined to award aggravated, punitive, or tort damages, finding that the evidentiary record did not establish the requirements for those additional remedies.

Takeaways

For employers, Contardi highlights the importance of assessing common law notice exposure before implementing significant workplace changes or proceeding with a termination involving a long-service or senior employee. Factors such as length of service, age, position, compensation, and re-employment prospects can significantly affect potential liability.

The decision also highlights the value of ensuring that enforceable employment agreements are in place before disputes arise. In the absence of a valid contractual limitation on notice, employers may face substantial common law liability, particularly when dealing with long-service or executive-level employees.

In all cases, employers should seek legal advice upon receipt of any legal document, including a Statement of Claim related to an employment-related issues.

Need More Information?

For more information about managing employee dismissals, constructive dismissal risk, or reasonable notice exposure, please contact Spencer Knibutat at sknibutat@filionlaw.com or your regular lawyer at the firm.