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corporate reorganization

By Simon Heath, BA, MIR, LLB, Heath Law | 3 Minutes Read November 20, 2015

Ontario divisional court addresses enforceability of termination clause in federal jurisdiction

In the past three years there have been a number of cases arising from the Ontario courts considering whether or not termination clauses which purport to rebut the implied presumption of common law notice and limit an employee’s entitlements upon termination are enforceable. The enforceability of such clauses can have significant consequences on the quantum of an individual’s damages because an employee’s common law entitlements typically exceed his/her minimum entitlements under the applicable minimum standards legislation. The Ontario Division Court recently considered the enforceability of a termination clause in the federal sector in Luney v. Day Ross Inc., 2015 ONSC 1440.

Article by Simon Heath, BA, MIR, LLB, Heath Law / Employee Relations, Employment Standards, Payroll / Canada labour Code, common law notice, corporate reorganization, employment contract, employment law, Enforceability of termination clause, just cause, notice and severance, notice and severance payments, right to reinstatement, Termination clause, termination of an employee, trucking business, unjust dismissal

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