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Employment Update: The Court Of Appeal Provides Guidance On The Forfeiture Of Equity Incentives Upon Dismissal
When an Ontario employer terminates an employee holding unvested Restricted Stock Units, can forfeiture clauses in equity agreements lawfully eliminate the employee's right to continued vesting during the statutory notice period? The Ontario Court of Appeal's decision in Wigdor v. Facebook Canada Ltd. addresses this critical question, examining whether such provisions impermissibly contract out of Employment Standards Act protections and what financial consequences employers face when equity forfeiture term
Blaney McMurtry LLP