Disgruntled exec joins competitor

After demotion, executive resigned and accepted another job while still negotiating severance
|Canadian Employment Law Today

This instalment of You Make the Call features an executive who accepted a new job with a competitor before he was officially terminated.

Dewey McMahon, 61, worked for automotive glass supplier TCG International for 28 years. He was promoted to senior vice-president of corporate distribution, based in Port Coquitlam, B.C., in 2000. With this promotion, McMahon signed a non-competition agreement required of all senior managers at TCG, which prohibited him from working with any competitors for two years following a termination.

In January 2002, McMahon was replaced and reassigned to another position reporting to his replacement. A year later, he was reassigned again to a job with reduced responsibilities. Though it was at the same salary, McMahon was concerned it was a demotion.