When the COVID-19 pandemic hit Ontario, many employers temporarily laid off employees or reduced their compensation because business revenues plummeted. This blog considers the legal implications of these layoffs and reductions in compensation under the Employment Standards Act and at common law.
common law rights on termination
It has become harder and harder to have a binding termination provision in an employment agreement, but it can still be done. Several cases provide further details.
This decision serves as an important reminder to employers to draft clear and enforceable termination provisions in order to avoid unanticipated liability upon termination. In particular, the Movati decision confirms that should an employer want to limit its obligations upon termination to the minimum entitlements required by statute, it is necessary to include clear words of limitation.