Are employment agreements valid if the position and salary change?

By Peter Israel
|Canadian Employment Law Today

Question:

We have an employee who has been with the company for 20 years. When she began her employment, she signed an employment contract which limited her notice upon termination to her entitlement under the applicable employment standards legislation. Originally the employee was hired as a receptionist at a salary of $17,000 a year. Over the years she has been promoted and is now an office manager earning $40,000 a year. We have been told that we may have a problem dismissing her and providing only her statutory entitlement to notice as per the terms of the employment agreement. Is this true? If the terms of the contract are clear, why wouldn’t it be enforceable?

Answer: