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Termination clause

Ontario Court of Appeal finds clarity in termination clause

The Court’s reversal in this case, while favourable to employers, emphasizes the occasional unpredictability of the law in this area. It is prudent to periodically review your contractual termination provisions for new hires.

 

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Putting on the brakes: Ontario courts are limiting the scope post-dismissal mitigatory earnings

Employers must be aware that it is now an increasingly risky strategy to fight a wrongful dismissal case on the hopes of saving money via employee mitigation of loss.

 

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Alberta Court of Appeal rules on termination clause

The case of Holm in this article is a good reminder of the importance of drafting clear and unambiguous termination clauses and the consequences of failing to do so.

 

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Why employers shouldn’t use severance calculators

Determining the period of reasonable notice is an art not a science. In each case trial judges must weigh and balance a catalogue of relevant factors.

 

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Ontario Court of Appeal confirms offer of employment is consideration after an asset sale

This case is a useful reminder that in asset sales, as opposed to share purchases, the purchasing employer is not obligated to hire all the vendor’s employees.

 

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Short service employee gets four months’ pay in lieu of reasonable notice

Some employers erroneously believe that there is a “rule of thumb” in the common law that employees are entitled to a month of notice per year of service. The Ontario Court of Appeal has held that there is no such rule, and that determinations of reasonable notice must be based on an assessment of all relevant factors.

 

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Amberber v. IBM Canada Limited: Termination clause fails to rebut employee’s entitlement to reasonable notice

A recent summary judgment motion before the Ontario Superior Court of Justice, Amberber v. IBM Canada Limited, serves as an important reminder to employers of the need to draft contractual termination clauses with a high degree of clarity, or risk unanticipated liability in the event of a without cause dismissal.

 

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Employer unsuccessful in voiding unfavourable termination clause

A recent decision from the Ontario Court of Appeal dealt with the unusual situation of a defendant employer arguing that its own contractual termination provision was unenforceable and thus the plaintiff employee was entitled to common law reasonable notice. Employees frequently challenge the enforceability of a termination provision to seek common law notice, however, it is rare that an employer would do the same.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: an employment agreement not signed before the first day of work; a volunteer in a coma who willingly assumed risks of the task that caused his injury; and the electronic distribution of T4 information slips.

 

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Termination clause and the importance of the word “minimum”

Employees are entitled to reasonable notice upon termination of their employment. However, a termination clause contained in an employment contract may oust the employer’s obligation to provide reasonable notice, so long as the termination clause actually limits the employee’s entitlement to notice, without violating employment standards.

 

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Wrongful dismissal update: More kinds of damages being ordered

Once upon a time, employees did not sign employment contracts with termination clauses and employment lawyers fought over the appropriate “reasonable” notice period. In 2017, however, employees now claim in addition to wrongful dismissal damages, human rights damages, moral or Wallace damages, punitive damages, and damages for the intentional infliction of mental stress.

 

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Employment contract oversight proves costly

As an employment lawyer, my consistent advice to employers is, whether you have one employee or one hundred employees, every employer needs to have written employment contracts. There are a number of ways that employment contracts can avoid or reduce liability, but the single most valuable term to include is a termination clause. In a written employment contract, employers have the opportunity to limit what can otherwise be a significant liability to their employees for termination pay, also referred to as severance or reasonable notice of termination.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: A case that addresses the validity of a termination of employment provision; Consumer Price Index (December 2016); and the release of revised noise guideline “A Guide to the Noise Regulation (O. Reg. 381/15) under the Occupational Health and Safety Act”.

 

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Termination provisions in employment contracts

As an employee, by law, you are entitled to reasonable notice of termination of your employment. Employers however, often attempt to limit your legal entitlements by explicitly defining your rights upon termination in the employment contract. In the recent case of Singh v Qualified Metal Fabricators Ltd. an Ontario Court adopted an employee–friendly interpretation of these termination provisions, resolving the potential ambiguities in favour of the employee. While employers are allowed to contractually limit employees’ common–law reasonable notice requirements, they are required to do so with complete precision.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: A matter where the court had to determine the enforceability of a promoted employee’s new employment contract, particularly the termination clause; current and 2017 payroll rates; and PRPP legislation that is now in force in Ontario.

 

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