USD4.71 million was added to Dr. Wigdor’s wrongful-dismissal damages after Ontario’s Court of Appeal said 9,405 RSUs should have kept vesting through his 10-month notice period.
The court held ESA sections 60 and 61 must be read together, so employers cannot use pay in lieu of notice to alter compensation terms that would be protected during statutory notice.
RSUs counted as a term or condition of employment because they were built into Wigdor’s compensation package, tied to continued service and taxed as employment income.
Meta’s plan language ending vesting immediately on termination—including clauses barring vesting during any statutory or common-law notice period—was therefore unenforceable.
The ruling raises risk for Ontario employers using equity compensation, especially where RSU or stock-plan terms are kept in separate agreements or linked to acquisition-related hiring.