Ontario Court of Appeal: Restricted Share Units Are Part of Termination Pay

In our practice, mediating employment termination disputes is common. While in most cases both parties accept that the working relationship itself is over, there is often still work to be done in finalizing a mutually agreeable separation package. Specifically, we are referring to terminations ‘without cause’, such as restructuring or layoffs, in which an employer has opted to provide pay in lieu of working notice, typically referred to as a package. The value and composition of the package can either lead to quick settlement or give rise to a dispute, especially if certain types of non-salary compensation are omitted. This article’s focus is on equity-related compensation such as stock options and restricted share units (‘RSUs’).