Former B.C. pulp company president not entitled to accrued earnings beyond notice period
May 09, 2023
In Robinson v. Canfor Pulp Ltd., 2023 BCSC 581, the Supreme Court of British Columbia found that Canfor’s former president was only entitled to have earnings accrue in a supplemental unregistered pension plan until the end of his notice period rather than until the time that it was paid out.
In response to his action, Canfor had argued that their former president was barred from bringing a claim for additional payment from the plan due to the release he signed as part of a settlement for his previous wrongful dismissal claim, and that if not, that the plan terms provided that accruals cease at the time of termination rather than the time of payment.
The Court found that this action fell under the release’s exclusion clause, and could proceed. However, the Court concluded that the terms of the plan provided that the plan’s account balance was determined at the date of termination rather than the date of payout. The fact that entitlements could remain in the plan past the date of termination does not change this. The Court further stated that it would be antithetical to the scheme to expect accruals to continue after that date.
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