Earlier this year, the Ontario Court of Appeal in Waksdale v Swegon North America Inc. struck down a termination clause. This was not groundbreaking as this court has struck down a number of termination clauses in recent years.
It’s been almost six months since the COVID-19 pandemic hit Ontario. During this time the government has introduced a number of new income support programs and new laws. There was no play book for handling this crisis.
Almost all employers require new employees to sign an employment contract. And almost all employment contracts have a termination clause. And most of the termination clauses have a provision which states that the employer has the right to terminate an employee for just cause without notice. This case suggests most of these termination clauses are not enforceable.