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Employee Breaches and $20 Million Later — Life after GasTOPS

Career GPS Domains: Employee Relations; Organization Design & Development; Leadership Development & Organizational Culture

Canadian HR ReporterOn March 1, 2012, the Ontario Court of Appeal in GasTOPS Ltd. and MxI Technologies Ltd. et al. upheld a decision of the trial court that certain former employees must pay their former employer almost $20 million for failing to provide reasonable notice of resignation and for profits those employees had made. After a 295-day trial, the court found the employees liable for breach of fiduciary duty, breach of confidence, and breach of their contract of employment. 

The trial court held:

  • The employer was entitled to 10 months’ notice of resignation
  • The employer was entitled to loss of profits of $12,306,495
  • The employees must pay full indemnity costs of $4,252,920.24.

What you need to know:

  • Has the pendulum swung in favour of employers?
  • Do employees have greater notice obligations to employers?
  • How are employer losses now calculated — by loss of profits or profits earned?
  • Are the size of costs awards on the rise?
  • What procedures should employers put in place to minimize their losses and maximize their entitlements?

Presenter: Ronald S. Minken, Minken Employment Lawyers

Ronald Minken heads Minken Employment Lawyers, a Global Award Winning Canadian Employment Law boutique in Markham in the Greater Toronto Area of Ontario, Canada. He is well known by employees and employers as a strategic negotiator and passionate proponent of employment law. He is frequently invited to speak, locally and abroad, to business leaders, human resource professionals, and at professional development seminars along with providing corporate training. With more than 20 years of experience, Ron has been recognized in Canadian HR Reporter’s Canada’s Employment Lawyers Directory.

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