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probationary clauses

Update on probationary clauses from Ontario Court of Appeal

Recently, the Ontario Court of Appeal affirmed that the probationary clause, which provided, simply, “Probation…six months”, was enforceable, and that the employee was not entitled to anything more than the one week of pay in lieu of notice of dismissal pursuant to the Ontario Employment Standards Act, 2000 (“ESA”).

 

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Probationary clauses: A double-edged sword for employers

Many employers find it necessary to assess new employees’ performance on the job before making a final determination about whether an individual is suitable for a position. In the absence of an express term in an employment contract, employees in Canada are entitled to reasonable notice of termination at common law when they are dismissed without just cause. Many employers put terms in their employment contracts, such as probationary clauses, which limit this entitlement. However, employers may not always be clear on the implications of such clauses.

 

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