In what circumstances will a court order that an employment contract must continue in good standing?

British Columbia, Canada


The following excerpt is from Philp v. Expo 86 Corp., 1987 CanLII 2476 (BC CA):

In Hill v. Parsons, Lord Denning, at p. 1350, gave an example of special circumstances that would require an order that an employment contract must continue in good standing. Suppose there is a contract of employment for five years, with a free house throughout the five years and a pension at the end of the five years. When there are only six months left in the five years, the employer gives three months' notice. If the notice has the effect of terminating the contract, whether it is adequate notice or not, the pension rights would be gone. In those special circumstances, the courts should order that the contract must remain in effect until the end of the five years, so that the employee will have a right to the pension he has done his part to earn.

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