Canizales v Microsoft Corporation and ors [2000] NSWIRComm 118

Canizales v Microsoft Corporation and ors [2000] NSWIRComm 118

The employment arrangement and its collateral option and severance plans were found to be unfair, harsh or unconscionable by reason of the failure to properly consider and afford the applicant reasonable notice, adequate job search on an international basis, continuation of the transitional assignment, or fair access to share options and severance entitlements. Microsoft’s conduct in terminating the applicant prematurely without providing a proper opportunity for vesting of rights, and conditioning severance on execution of a deed of release, denied benefits that should have accrued under the expectation of the arrangement. As such, variation of the plans and award of entitlements were...

Jurisdiction
Australia
Judgment Date
01 September 2000
Procedural Posture
Summons for Relief Under S106 of the Industrial Relations Act 1996 / Judgment
Outcome
Applicant substantially succeeds against first and second respondents; third respondent (ninemsn) not liable.
Legal Topics
['unfair Contract' 'redundancy and Dismissal' 'share Options' 'severance Entitlement' 'notice of Termination']
['employment Law' 'contract Law' 'industrial Law'] ['unfair Contract' 'redundancy and Dismissal' 'share Options' 'severance Entitlement' 'notice of Termination']

Case Brief

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Procedural Posture

Summons for Relief Under S106 of the Industrial Relations Act 1996 / Judgment

Legal Issues

  1. 1 ['Whether the employment contract or arrangement was unfair, harsh or unconscionable, particularly as to notice of termination and entitlement to share options and severance payments' 'Whether the transitional assignment created a fixed term contract and effect of same on termination rights and vesting of options' 'Whether forfeiture of severance plan rights by failure to execute deed of release operated unfairly' "Whether the Share Option Plan and Severance Plan, as part of or collateral to the employment arrangement, operated unfairly on termination without proper consideration of applicant's circumstances"]

Ratio Decidendi

The employment arrangement and its collateral option and severance plans were found to be unfair, harsh or unconscionable by reason of the failure to properly consider and afford the applicant reasonable notice, adequate job search on an international basis, continuation of the transitional assignment, or fair access to share options and severance entitlements. Microsoft’s conduct in terminating the applicant prematurely without providing a proper opportunity for vesting of rights, and conditioning severance on execution of a deed of release, denied benefits that should have accrued under the expectation of the arrangement. As such, variation of the plans and award of entitlements were...

Court Disposition

Applicant substantially succeeds against first and second respondents; third respondent (ninemsn) not liable.

Orders

  • ['Option plans varied so that share options granted in 1994 and 1995 and scheduled to vest between 15 May 1998 and 31 July 1999 vest forthwith and are exercisable within 90 days of vesting.' "Severance plans varied for payment of severance in accordance with plan formula (4 weeks' salary plus 2 weeks for every 6...