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Enforceability of termination clause in employment agreement

Those of us that practice employment law understand that our Courts will not hesitate to deem a termination clause in an employment agreement unenforceable if they are provided with a reasonable basis upon which to do so. In recent times, we have seen two noteworthy cases that have dealt with termination clauses and been decided in favour of the employee. Employers and their counsel should be mindful of these cases as they implement employment agreements, if they hope to be able to rely upon them.

 

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Unexpected impact of share buyout of senior management

When one corporation “buys out” another (by asset purchase, share purchase, or other transaction), the impact on the buyers and sellers is clear. There are clearly winners and losers which is what presumably drove the transaction to begin with. While the employers of the purchasing and selling companies. The structure of the transaction can have a significant impact on their futures. Fortunately, the Ontario Employment Standard Act does provide certain safeguards for employees in the circumstances. For example the Employment Standard Act imposes a requirement for payment of up to one week per year of service.

 

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Most-viewed articles this week on HRinfodesk

The three most viewed articles in this week’s HRinfodesk newsletter deal with the new EI benefit for parents with critically ill children, constructive dismissal and benefits for workers who work past 65 years of age…

 

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Failure to continue disability coverage during the notice period

Last year, I reminded employers of the danger of failing to continue disability benefits after dismissing an employee and providing pay in lieu of notice. An important case has now passed through the Ontario Court of Appeal…

 

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Increase in litigation by employers against former employees

In reviewing the cases that come along through the various reporting services, my subjective impression is that there appears to be an increase in litigation by employers against former employees.

 

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