Anticipatory breach of contract

Employee entitled to treat the changes in his employment contract as constructive dismissal
|Canadian Employment Law Today

Harold Lewington began working for Pemberton Insurance Corporation in November 1993. The terms of his employment were laid out in a letter dated Nov. 25, 1993. Mr. Lewington was hired as an account executive and manager of operations.

One of the terms of his employment was the right to purchase corporate shares when the shareholder’s agreement and pricing was established. This was a significant inducement for Mr. Lewington to leave his former position as president and manager of another insurance brokerage to work for Pemberton.

When Mr. Lewington was hired the company president, Alan Finnie, was contemplating retirement and attempting to set in place a succession plan. It had been discussed that, on his retirement, the shares that he owned in Pemberton would be sold to the remaining executives in the firm, including Mr. Lewington. It was not until 1999 that Allan Finnie began to set his retirement plans in motion. By 1999 Mr. Lewington still had not purchased company shares.