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Don’t take a chance on it: The uncertainty of ESA-only termination clauses

In January 2017, the Ontario Superior Court of Justice released its decision in Cook v. Hatch upholding a less than perfect termination clause that failed to reference statutory severance pay or provide for continued health benefits during the statutory notice period. A month later, the Court of Appeal responded with its decision in Wood v. Fred Deeley Imports Ltd. where it overturned a motion judge’s ruling upholding a similar termination provision. And so, the age old debate about the enforceability of ESA-only termination provisions rages on.

 

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Can an employment agreement executed after the employee starts work be enforced? The Ontario Court of Appeal says yes.

In Wood v. Fred Deeley Imports Ltd., the Ontario Court of Appeal confirmed that a “written employment agreement is not unenforceable merely because the employee signs it after starting to work”. The Court found the trial judge’s inference to be reasonable, noting that Deeley did not claim she reviewed the terms of her employment for the first time on April 24, 2007, or that the contract contained any new material terms. The Court acknowledged that the contract was likely signed the day after Deeley started work as “a matter of administrative convenience.” In these circumstances, fresh consideration was not necessary.

 

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CIC publishes ministerial instructions establishing the start-up business class

On March 30, 2013, Citizenship and Immigration Canada (“CIC”) published Ministerial Instructions in the Canada Gazette, which formally establish the new Start-Up Business Class. CIC also published Chapter 27 of the Overseas Processing Manual, which provides further details regarding the processing of such applications.

 

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