Client Win: Distribution Director secures substantial severance after wrongful dismissal

Imagine this: You’re climbing the ladder in your career, hired into a high-level role with a six-figure salary and a promising future. Then, just months later, you’re blindsided by a termination letter and a severance offer that barely acknowledges your contributions. That’s exactly what happened to our client, a 48-year-old Director of Warehousing and Distribution, after less than eight months on the job. The employer offered him one month’s pay in exchange for signing a release. It wasn’t just unfair—it was a wrongful dismissal.

With the support of Samfiru Tumarkin LLP and Ottawa employment lawyer and Partner Alex Lucifero, our client took a stand. And in a decisive win, the Ontario Superior Court confirmed what he was truly owed, proving that clear agreements and fairness matter. Here’s how justice prevailed.

The Case: Marques v Delmar International

Client’s Journey: Our client, Mr. Marques, was hired on August 11, 2014, as the Director of Warehousing and Distribution for Delmar International, a logistics and supply chain management company. His compensation package included a $185,000 salary, an $800 monthly car allowance, and a guaranteed $25,000 bonus. Yet, by April 7, 2015, he was terminated without cause. The company offered a severance package of one month’s pay, provided he signed a release. Marques wisely declined and sought legal counsel through Samfiru Tumarkin LLP.

Key Issues: The case revolved around three critical questions:

1. Was the monthly car allowance part of Marques’ total compensation? Delmar claimed the car allowance was reimbursement for business expenses, not income. However, the employment agreement explicitly listed the allowance under “Compensation.” Delmar also failed to provide or incorporate its internal car allowance policy into the agreement, leaving the court to interpret the plain language of the contract.
2. Was Marques entitled to a guaranteed $25,000 bonus? The employment agreement promised a $25,000 “guaranteed” bonus after one year of employment. Delmar argued early termination disqualified Marques, but the agreement’s terms didn’t require “active employment” on the anniversary date, a distinction that weighed heavily in court deliberations.
3. What constituted proper severance? Despite less than eight months of service, Marques held a senior role requiring specialized skills. His age and position warranted careful consideration under common law principles.

The Court’s Decision

After reviewing the evidence, Justice Diamond ruled decisively in Marques’ favor on key points:

1. Car Allowance: The court concluded that the car allowance was part of Marques’ total compensation, making it subject to severance package calculations.
2. Bonus Entitlement: The court determined that Marques would have been entitled to the guaranteed $25,000 bonus if the length of the severance package extended beyond his one-year anniversary. However, the four-month period awarded did not meet this threshold, so the bonus was excluded.
3. Severance Pay: The court awarded Marques a four-month severance package, reflecting his seniority, skills, and the circumstances of his termination. Notably, the court emphasized that this reasonable notice must be based on conditions at the time of dismissal, not how quickly new employment is found.

The Outcome

• The court ordered Delmar International to pay $45,358.41 in severance, which included Marques’ salary and car allowance for the four-month period. It accounted for the $14,230.97 lump sum payment already made by Delmar at the time of termination, ensuring Marques received the balance owed to him
• Additionally, Delmar was required to pay $7,250 in legal costs, ensuring Marques wasn’t burdened by unnecessary litigation expenses.

Key Takeaways

This victory highlights critical lessons for both employees and employers:

For Employees

• Know Your Rights: Allowances, bonuses, and other benefits listed in your employment agreement may be part of your severance entitlements.
• ‘Don’t Rush to Settle: Initial severance offers often fall short of legal requirements. Consulting with a Samfiru Tumarkin LLP employment lawyer before you sign off on an offer ensures you receive what you’re owed.
• Mitigation Efforts Matter: Actively seeking new employment strengthens your case and demonstrates good faith.

For Employers

• Clarity is Critical: Ambiguities in employment contracts can lead to costly disputes. Ensure your policies are explicitly included and clearly defined.
• Termination Must Be Fair: Short service doesn’t exempt employers from providing reasonable notice. In fact, short-service employees often receive proportionately higher severance.
• Be Prepared for Scrutiny: Vague terms like “active employment” may not hold up under legal analysis.

We’re here to help

Losing your job can be overwhelming, but you don’t have to face it alone. Whether it’s a severance dispute, wrongful dismissal, or contract negotiation, Samfiru Tumarkin LLP is here to support you.

We specialize in achieving strong outcomes for employees across Ontario, Alberta, and B.C., resolving most cases quickly without trial. When needed, as in Marques v. Delmar International, we’re ready to fight in court to secure the justice you deserve.

Don’t let uncertainty hold you back. Take the first step toward securing the justice you deserve—contact us today.