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termination provision

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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Employment standards: Risks of paying employees “under the table”

Before hiring your first employee, an employer needs to educate itself on the various requirements under the Employment Standards Act, 2000 (and other legislation such as the Workplace Safety and Insurance Act (the “WSIA”) and Occupational Health and Safety Act­) and the nuances associated with termination of an employee’s employment. Although there will be some upfront costs associated with record keeping, registering for insurance pursuant to the WSIA and learning about employment legislation, the benefits of such proactivity will pay off in the future when issues inevitably arise, even if you only have one or two employees.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with: employment agreements that are signed after employees start work; how employers can prepare for the CPP expansion; Ontario Ministry of Labour’s interim report on the current labour and employment law framework.

 

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Harsh or “draconian” terms in employment contract not enough for unenforceability

In Kielb v. National Money Mart Company, a dismissed employee sought to have the termination and limitation clauses in his employment agreement found unenforceable. His goal was to recover his bonus for the year during which he was terminated, as well as his contractual pay in lieu of notice, which he waived, in accordance with his employment contract, when he refused to provide Money Mart with a full and final release after his termination.

 

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