by Brian Smeenk
Suppose you want to change an important term of your Canadian employee’s employment contract, such as the bonus plan, future salary adjustments or the termination package. Can you do it without the employee’s agreement? If so, how?
Western Inventory Service Ltd. recently found out the hard way that it couldn’t unilaterally alter an important part of an executive’s contract — his severance package — without first terminating the contract. That termination made the company liable for the very severance package it was seeking to reduce, plus most of the executive’s legal costs.