Short Service Executives – Long Common Law Notice Periods
Forget about one month of notice per year of service for short-service employees. There is trend in employment law of generous notice period awards for short-service employees that were previous reserved for those with longer tenures. The upwards tick in notice periods is most apparent for short-service executives, due to their specialized knowledge, limited availability of similar roles, and the inherent difficulty of explaining the short durations of their prior employer when searching for a new job.
The following three cases highlight the factors that Ontario courts assess when awarding notice periods for short service executives.
Chan v. NYX Capital Corp., 2025 ONSC 4561
The plaintiff, Reginald Chan, sued his former employer for wrongful dismissal after being terminated one day before the end of his contractual probationary period. His title was that of Vice President – Acquisitions and Asset Management and Chief Compliance Officer.
The court found that the termination clause in the employment agreement, including the probationary clause to be void and unenforceable. The court awarded Mr. Chan 3 months of notice based his senior position, specialized skill set, the difficulty of explaining his short tenure, and limited prospects for comparable employment justified an extended notice period. The court characterized him as an executive.
Shelp v. GoSecure Inc., 2025 ONSC 49
Here the court awarded 6 months’ reasonable notice to a Vice President of Sales who had been employed for only 10 months before being terminated without cause. The parties agreed that the termination clause was unenforceable, entitling Mr. Shelp to common law notice.
The court held that Mr. Shelp’s short tenure did not justify a proportionally brief notice period, emphasizing the significance of his senior position, the specialized nature of his expertise, and the difficulty of securing comparable employment.
Grimaldi v. CF+D Custom Fireplace Design Inc., 2023 ONSC 6708
In Grimaldi, the court considered reasonable notice entitlements for a short-service employee in a specialized, senior role. Mr. Grimaldi, though not given an executive title, was the company’s highest-paid employee and was expected to operate with the authority and responsibility of an owner. He was terminated without cause after less than 5 months of employment. Mr. Grimaldi’s employment contract did not have an enforceable termination clause.
The Court awarded Mr. Grimaldi nearly 5.5 months of reasonable notice, finding that despite his brief tenure, his senior position, specialized skill set, and limited prospects for comparable employment justified an extended notice period. The court characterized him as an executive. The court also recognized that Mr. Grilmaldi’s termination left him particularly vulnerable in the job market.
Key Takeaways for Employers:
- Short-service employees in senior or specialized roles are often entitled to substantial notice periods.
- Employers should ensure that termination clauses are carefully drafted and enforceable, as courts continue to award generous notice periods where contractual provisions fail.