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Termination clause

Failure to repeat termination clause after multiple promotions voids clause

In McKercher v Stantec Architecture (2019 SKQB 100), Justice Elson had a situation where at the time of his hiring as a staff architect, the plaintiff signed an enforceable contract limiting his notice to a maximum of 3 months.

 

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OCA upholds ESA related termination clause

In Nemeth v Hatch (2018 ONCA 7), the Court was faced with the following termination clause:

 

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Is 36 months the new 24?

For a long time, the common law notice period had an “unofficial” cap of 24 months, which was generally reserved for very long-service, senior level management. In recent years, things have changed and longer notice periods are becoming the norm.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with termination clauses, 2018-2019 payroll rates and changes to the Employment Insurance Act.

 

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Court of Appeal partially invalidates release of notice entitlements

This blog focuses on the issues surrounding statutory minimums and waiving out, leaving the issue of restrictive covenants raised in the cross appeal for another day.

 

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Will a judge enforce the termination clause in your organization’s employment contract?

Although it is theoretically possible to limit an employee’s rights on termination to ESA minimums, it is difficult to do so in practice because trial judges are reluctant to enforce them.

 

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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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