Fired With Unvested RSUs? Ontario Court of Appeal Decision Could Mean You Are Owed More

If you were fired from your job and lost valuable restricted stock units (RSUs) that had not yet vested, a major new Ontario Court of Appeal decision could significantly increase what you are owed.

In Wigdor v. Facebook Canada Ltd., 2026 ONCA 572, the court ruled that provisions in Meta’s RSU agreements that stopped an employee’s stock units from vesting immediately after termination violated Ontario’s Employment Standards Act (ESA).

Those provisions were therefore unenforceable.

The result was significant: the employee was awarded an additional US$4.7 million for RSUs that would have vested during his notice period.

For executives and senior managers, salespeople and other employees who receive a meaningful portion of their compensation through RSUs or other equity awards, the decision is extremely important.

What Happened in Wigdor v. Facebook?

Daniel Wigdor worked for Facebook Canada, now part of Meta, as a Director of Research Science.

His compensation included:

• A base salary of more than $250,000
• Benefits
• Restricted stock units
• Additional RSU grants during his employment

Meta terminated his employment in December 2023.

Under Meta’s RSU agreements, unvested RSUs were supposed to be forfeited when his employment ended. The agreements also attempted to prevent RSUs from continuing to vest during a notice period following termination.

Wigdor challenged those terms.

The Ontario Court of Appeal ultimately determined that he was entitled to 10 months of reasonable notice and that the RSUs scheduled to vest during those 10 months had to be included in his wrongful dismissal damages.

Those RSUs were worth approximately US$4.71 million.

Why Did the Court Find the RSU Terms Unenforceable?

Ontario employment law protects an employee’s terms and conditions of employment during their minimum notice period under the ESA.

The Court of Appeal found that Wigdor’s RSUs were part of his employment compensation and therefore a term or condition of his employment.

Meta’s RSU agreements attempted to stop his unvested RSUs from vesting immediately after termination.

The court found that doing so would improperly change a term or condition of employment during the employee’s ESA notice period.

Because an employment agreement in Ontario can’t provide less than the minimum protections required by the ESA, the offending RSU provisions were void.

That had a much larger consequence.

Once those RSU terms were found to be unenforceable, they could not prevent Wigdor from claiming the RSUs that he would have received during his longer common-law reasonable notice period.

What Does the Wigdor Decision Mean For Employees with RSUs?

The decision could have a major impact on employees whose compensation includes restricted stock units.

If you are fired, your employer can’t necessarily rely on language in an RSU plan stating that all unvested units disappear immediately when your employment ends.

The wording of the RSU agreement must comply with Ontario employment law.

If it doesn’t, the restriction can be unenforceable.

That could mean you are entitled to the value of RSUs that would have vested had you remained employed throughout your proper notice period.

For highly compensated employees, those amounts can be substantial. This is why anyone with significant equity compensation should have their entire Ontario severance package reviewed before accepting it.

Executives and Salespeople Should Pay Particular Attention

RSUs and other forms of equity compensation are increasingly common for:

• Executives
• Vice-presidents
• Directors
• Senior managers
• Technology employees
• Sales executives
• Account executives
• Business development professionals
• Employees of publicly traded companies

For some employees, their salary is only one part of their overall compensation package.

RSUs, bonuses, commissions and other incentive compensation can be worth tens or hundreds of thousands of dollars — and sometimes millions.

That means reviewing only the salary portion of a severance offer can dramatically underestimate what an employee is actually owed. Our guide to executive severance pay in Ontario explains why an executive’s full compensation package must be considered following termination.

My RSU Agreement Says I Lose Everything When I’m Fired. Is That Enforceable?

Not necessarily.

That is one of the most important lessons from Wigdor v. Facebook.

Meta’s RSU agreements contained language specifically designed to stop vesting following termination.

One version stated that no vesting would continue during a statutory, contractual or common-law notice period.

Later versions said unvested RSUs would be forfeited at termination unless continued vesting was “explicitly required by applicable legislation.”

The Court of Appeal still found the provisions unenforceable.

Simply putting language into an RSU agreement saying that stock is forfeited when employment ends does not automatically make that language valid.

The wording must comply with employment standards legislation. The same principle makes it important to review termination clauses in employment contracts carefully after a job loss.

Are You Automatically Entitled to RSUs Throughout Your Entire Severance Period?

Not every terminated employee with RSUs will automatically receive them throughout their full notice period.

Your entitlement depends on several factors, including:

• Your employment contract
• The wording of the RSU or equity plan
• How the RSUs form part of your compensation
• Your vesting schedule
• The enforceability of any termination provisions
• The amount of reasonable notice you are owed

However, Wigdor gives terminated employees a powerful new basis to challenge RSU provisions that attempt to stop vesting immediately upon termination.

This can make a significant difference to the value of a severance package.

Your Severance Is More Than Your Salary

If you receive RSUs, commissions, bonuses or other incentive compensation, your employer should not be assessing your termination package based only on base salary.

A proper severance review needs to consider the compensation you would have received had you continued working through your applicable notice period.

Depending on your situation, that can include:

• Base salary
• Bonuses
• Commissions
• RSUs and other equity compensation
• Benefits
• Other forms of compensation

The difference can be enormous for senior and highly compensated employees.

Fired and Lost Unvested RSUs? Get Advice Before Accepting Severance

If you have recently been terminated and your employer says your unvested RSUs have been cancelled, do not assume that the RSU agreement ends the discussion.

The Ontario Court of Appeal’s decision in Wigdor v. Facebook Canada Ltd. confirms that these provisions must comply with Ontario employment law.

You could be owed considerably more than what appears in your termination letter — many severance packages consist of around 24 months’ pay.

Before signing a full and final release or accepting a severance package, have your employment agreement, RSU documents and termination offer reviewed by an experienced Ontario employment lawyer.

Contact Samfiru Tumarkin LLP today

If you were fired and lost RSUs, stock options, bonuses, commissions or other valuable compensation, contact Samfiru Tumarkin LLP to find out what you are actually owed — and how we can secure it for you.

Contact us today for a consultation with an employment lawyer.