In LaPlume v AAA Internet Publishing Inc, 2025 BCSC 2139, the British Columbia Supreme Court considered whether an employment agreement signed at the beginning of employment remained enforceable after nearly a decade of promotions, salary increases, and expanded responsibilities. The case focused on the “changed substratum” doctrine.
Facts
Mr. LaPlume began working for AAA Internet Publishing Inc. in 2013 as a junior developer. He signed an employment agreement that limited his termination entitlements to a maximum of 16 weeks’ notice/pay in lieu and expressly allowed the employer to modify his duties, title, and reporting structure without breaching the agreement.
Over approximately 9.5 years, he received several salary increases; he was promoted first to Manager of the Games Team and later to Operations Manager; and he assumed some supervisory and training responsibilities.
However, he continued performing many of his original technical duties; his hours, reporting relationship, and work location remained largely unchanged; and no new employment agreement was executed.
When terminated without cause in 2023, the employer paid 16 weeks’ pay pursuant to the employment agreement. Mr. LaPlume sued for common law reasonable notice, arguing that the original contract — particularly the termination clause — had become unenforceable because his role had fundamentally changed over time.
Issue
Whether the employee’s promotions and evolving responsibilities were sufficiently substantial to invalidate the original employment agreement under the “changed substratum” doctrine.
Decision
The Court upheld the enforceability of the employment agreement and dismissed the employee’s wrongful dismissal claim. The termination clause remained binding.
Court’s Reasoning
The Court reaffirmed that the changed substratum doctrine applies only where the employment relationship has evolved so fundamentally that the original contract can no longer reasonably be said to govern the parties’ relationship. Incremental or predictable changes are insufficient.
Key findings included:
- The employee’s progression from developer to manager was “incremental and predictable”;
- His core technical duties remained substantially intact despite added supervisory responsibilities;
- The promotions did not fundamentally alter the nature of the employment relationship; and
- The employment agreement expressly contemplated future changes to duties and responsibilities, which strongly supported continued enforceability.
The Court contrasted the facts with cases like Schmidt v AMEC Earth & Environment et al, 2004 BCSC 1012, where employees underwent dramatic transformations in role and responsibility over long careers. In LaPlume, the changes were not of that magnitude.
Key Legal Principles
The case confirms several important principles regarding the changed substratum doctrine. The doctrine is narrow and applies only where employment changes are fundamental or dramatic; promotions, raises, and additional managerial duties do not automatically invalidate an employment contract; courts will consider whether:
- the employee’s core role materially changed;
- reporting relationships, hours, and structure changed;
- the changes were foreseeable or incremental; and
- the contract expressly contemplated evolving duties.
And well-drafted “change” clauses can significantly strengthen enforceability against changed substratum arguments.
Practical Significance
For employers, LaPlume is a strong authority supporting the continued enforceability of older employment agreements despite promotions and career progression — particularly where the contract anticipates future role evolution.
For employees, the decision illustrates that merely obtaining promotions or salary increases will usually not be enough to displace a termination clause. Courts will look for truly transformative changes in the nature of the employment relationship before applying the changed substratum doctrine.
*Always seek legal advice. The above is for information purposes only.
Stephen Dugandzic received his Juris Doctor degree from the University of Alberta in 2013 and is Calgary-based. He previously practised with Bennett Jones LLP and Taylor Janis LLP before founding YYC Employment Law Group in 2018 and Evolution Legal in 2026.