Determining appropriate common law notice periods for short-service employees remains one of the most debated topics in Ontario employment law. This is especially so when those employees are senior-ranking employees or executives. While long-service employees often expect generous notice periods, recent case law continues a long-evolving trend of courts willing to award significant notice to short-service employees.
The rationale? Executives and senior-status employees typically hold specialized roles, sometimes switch positions due to some form of inducement away from great and stable jobs, have fewer comparable opportunities, and often face unique challenges in finding replacement positions. Notably, the courts have identified that short-service employees, especially those of senior status, will likely have difficulty explaining such a short position in a subsequent job search.
This blog summarizes the two cases between 2023 and 2025 that show a continuing trend in how Ontario courts approach common law notice periods for short-service executives. One case can be qualified as involving what is known as a “hidden executive” (yes, I made that up) and one case involves an employee who is quite clearly in an executive position. We also discuss what these decisions mean for employers and employees in Ontario.
1: Grimaldi v. CF+D Custom Fireplace Design Inc., 2023 ONSC 6708
In Grimaldi, the Ontario Superior Court addressed the issue of reasonable notice for a short-service employee in a specialized role. Mr. Grimaldi – who did not have a fancy title but was expected to act like the owner of the company and was the highest-paid employee – was terminated without cause after less than 5 months of service.
After reviewing his employment contract, the court awarded Mr. Grimaldi almost 5.5 months of notice. In reaching this decision, the court emphasized that while Mr. Grimaldi’s tenure was short, his senior position, specialized skill set, and limited availability of comparable roles justified an extended notice period. Mr. Grimaldi was someone who did not have the title of an executive, but was nonetheless, an equivalent in substance – a “hidden executive.” The court noted that his dismissal left him particularly vulnerable in a competitive job market. Importantly, the court awarded this extended notice period despite finding that Mr. Grimaldi was not induced into the short-term role.
The court reaffirmed that the length of service is only one factor in assessing reasonable notice, and short service does not automatically lead to minimal notice if other factors support a longer period.
2: Shelp v. GoSecure Inc., 2025 ONSC 49
In Shelp, the Ontario Superior Court awarded a notice period of 6 months to a Vice President of Sales who only worked for 10 months before being terminated without cause. GoSecure conceded in this case that Mr. Shelp’s contract was unenforceable due to a vague termination provision; thus, entitling him to common law reasonable notice.
The court emphasized that Mr. Shelp’s relatively short tenure did not justify a shorter notice period, given the nature of his role and the challenges in securing similar employment. Again, as in Grimaldi, the court found that Mr. Shelp was not induced into the short service role, and awarded an extended notice period despite this fact.
What These Cases Mean for Ontario Employment Law
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Short Service ≠ Short Notice
Courts in Ontario have moved away from the assumption that short-service employees deserve minimal notice. Especially for executives, courts focus on the nature of the role and challenges in finding comparable employment, which often lead to higher notice periods. There are other cases affirming this trend for non-executes as well, they are simply not mentioned in this blog. -
Specialized Roles Mean More Leverage
If an employee is highly specialized, executive or not, they may have a stronger case for longer notice due to the challenges of finding comparable employment.
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No Need for Inducement
Some of the older case law awarding lengthy notice periods for short-service employees involved employees who were induced away from their previous role. However, courts seem to be moving away from requiring inducement to be present to award an extended notice period.
Final Thoughts
Ontario courts are consistently affirming that short-service executives deserve reasonable protections under the law. I will venture to say that extended notice periods for very short-service employees will soon become the norm, not the exception, whether the employee at issue is an executive or not.
For employers, this trend highlights the importance of carefully drafting contracts and considering the broader implications of terminating high-level employees. For employees, these cases are a reminder that your entitlements under the common law may be more substantial than you think, particularly if you have held a senior or specialized role. If you are an employer looking to structure executive contracts or an executive facing termination, reach out to us for practical, tailored advice to navigate these complex issues.
