Consider this: you provide a new agreement to an existing employee. The agreement contains a termination clause limiting the employee’s entitlements upon termination to the minimum under the statute. The employee signs the contract. Several years later, after dismissing the employee and providing them with their minimum statutory entitlements, you receive a letter from the employee’s lawyer seeking 24 months of pay in lieu of notice.
esources issues like never before. Employers would be well-advised to consider the ways in which their actions at every step of the employment relationship, including those taken at the very beginning, can create or mitigate legal risks.
The Court of Appeal for Ontario has confirmed that in an asset sale, a purchaser’s offer of employment to a seller’s employee can constitute consideration for changes in an employment contract — including a new termination clause.