First Reference company logo

First Reference Talks

News and Discussions on Payroll, HR & Employment Law

decorative image

termination clauses

Lessons from the mistakes of others: Reliance on an unenforceable termination clause is costly

A recent judgment of the New Brunswick Court of Appeal has once again affirmed the importance of carefully drafting termination clauses in employment contracts. In this case, the Court upheld a trial judgment that a termination clause which purported to limit the employee’s notice entitlement to 20 days was not enforceable. The Court of Appeal’s […]

 

, , , , , , , , , , , , , , , , , , , , ,

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.

 

, , , , , , , , , , , , ,

Next posts