In Chowanetz v. Ivor Forest Products Ltd., 2026 BCSC 1760 Justice Wilson had a situation where the employee signed a new employment contract containing a nESA only termination clause after a few years of employment ( he 2024 Contract) . Prior to the 2024 Contract there was no termination clause.
The employer claimed that there was fresh consideration in that a) his hourly wage went from the original $35 to $38.50 per hour, b) they introduced a RRSP matching program and c) they introduced a discretionary bonus plan.
The Judge found that the wage increase was not fresh consideration because in the original contract the employer agreed to review his salary annually to insure that it kept up with market. As there was no evidence led which would show that the new $38.50 rate was above the market rate, the increase was not fresh consideration but rather simply fulfilling the prior obligation to maintain the wage at the market rate.
The RRSP program was introduced a few weeks before the signing of the 2024 Contract so that was not fresh consideration.
As the bonus program was entirely discretionary , it could not be fresh consideration as the bonus could have been zero.
As such the employee was entitled to reasonable notice of 6 months notice for a 48 year old technician with just under 5 years service
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Barry B. Fisher LL.B.