In the case of Egan v Harbour Air Seaplanes LLP dated November 1, 2023, the defendant, Harbour Air Seaplanes LLP ("Harbour Air"), sought the dismissal of a wrongful dismissal claim brought by Mr. Egan.
The central issue was the enforceability of the termination clause in Mr. Egan's employment contract. Mr. Egan, the plaintiff, had not filed a cross-application, but both parties had agreed that the matter was suitable for summary trial.
The case's key issues had revolved around contract interpretation and calculating damages.
Harbour Air had argued that, as a federal work, it was governed by the Canada Labour Code, which set out specific obligations for employee termination.
They had relied on a termination clause in Mr. Egan's contract that had referenced compliance with the Code's requirements.
Harbour Air had paid Mr. Egan two weeks' wages and five days of severance pay, amounting to $10,203.93, as per the Code's provisions.
The court had determined that the termination clause was not ambiguous, and since Harbour Air had provided payment in lieu of notice, Section 231 had not applied.
As a result, Mr. Egan's claim for damages had been dismissed.
In conclusion, the court had allowed Harbour Air's application for dismissal of the action, and the parties had been given the opportunity to make submissions on costs.
