Ex-Rogers CEO Joe Natale files $24M wrongful dismissal lawsuit

Joe Natale, the former CEO of Rogers Communications (Rogers), is suing the company for wrongful dismissal and breach of contract after being fired without cause and replaced by Tony Staffieri in November 2021.

The change in management occurred as a result of a public struggle within the Rogers family.

Natale and his firm, Natale Industries Inc., are seeking a total of $24 million in compensation and damages, including $4 million from an unpaid bonus tied to the closing of Rogers’ acquisition of Shaw Communications in April.

What happened: In his statement of claim filed with the Ontario Superior Court of Justice on Thursday, Natale alleges that Rogers chairman Edward Rogers and his wife, Suzanne Rogers, attempted to “tarnish his reputation” after his termination.

• Natale accuses Rogers of engaging in “malicious, high-handed, and oppressive conduct.”
• Suzanne Rogers is alleged to have hired actor Brian Cox of HBO’s “Succession” to record a “demeaning” video about the ousted CEO and Edward Rogers’ “real life Succession at Rogers Communications” (the video was distributed and eventually ended up on social media).
• Bill Walker, Natale’s spokesperson, said, “it is unfortunate that Rogers will not honour its commitments made to Mr. Natale.”

Response from Rogers: The media giant filed a response, saying Natale engaged in “serious misconduct” by awarding himself “excessive compensation” that wasn’t authorized.

• Rogers Communications says that Natale was fired after the conclusion of an independent investigation that the former CEO was aware of.
• “The investigation reveals that in October 2021, Mr. Natale knew that steps were being taken to make changes to the board and this would end his tenure as CEO.”
• “Before his departure, he awarded himself excessive compensation without proper board approval. This, and other actions, were a serious breach of his fiduciary duties as a chief executive officer and a director of a public company.”
• “The company will defend itself vigorously against his baseless claim and will file a counterclaim to address his improper behaviour.”

Natale’s severance package: The ex-CEO of Rogers, who had been with the company since 2017, was granted a severance package exceeding $14 million. Natale’s severance arrangement was formulated using a blend of factors applicable to all non-unionized Canadian employees, alongside considerations tailored to senior executives.

LEARN MORE
• Severance pay for Rogers employees
• Layoffs at Rogers following merger with Shaw

What is a wrongful dismissal?

A wrongful dismissal in Canada occurs when an employee loses their job, but does not receive the proper amount of severance pay.

Full severance pay in provinces like Ontario, Alberta and B.C. is based on multiple factors, and can be as high as 24 months’ pay.

Employment law firm Samfiru Tumarkin LLP created the Pocket Employment Lawyer to calculate how much severance pay you may be owed when you are fired or let go.

WATCH: Employment lawyer Lior Samfiru explains everything you need to know about severance pay on an episode of the Employment Law Show.

Workplace investigations

Rogers Communications alleges that it carried out a third-party investigation into his conduct, and determined that he took steps that were in breach of his duties.

Companies use workplace investigations to determine if an employee has engaged in misconduct or poor performance.

If the review reveals evidence of inappropriate behaviour, the employer may decide to fire the employee for cause. When someone is dismissed for cause, they do not receive a severance package and they can’t claim EI.

However, employers often resort to firing someone for cause prematurely or when the situation doesn’t warrant it.

Employees that fall into this category are considered by the courts to have been wrongfully dismissed, and are owed full and proper severance pay.

Time limit for severance

You have two years, starting from the moment you lose your job, to pursue a legal claim against your employer for severance pay.

An employer can’t eliminate that right by imposing a meaningless deadline on a severance offer.

Given that Ex-Rogers CEO Joe Natale was alleged to have been fired on or around Nov. 16, 2021, he had until roughly Nov. 16, 2023 to file a wrongful dismissal claim to exercise his right for appropriate compensation.

Talk to an employment lawyer

Whether your job loss is due to termination with or without cause, it’s crucial to promptly get in touch with the employment lawyers at Samfiru Tumarkin LLP before you sign termination papers or accept a severance offer.

Failure to do so could result in the loss of tens of thousands of dollars in severance pay!

Our experienced employment lawyers have helped tens of thousands of individuals across Ontario, Alberta, and B.C. enforce their rights.

With employment lawyers in Toronto, Ottawa, Calgary, and Vancouver, we stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.