As my contracts professor used to say, “you can’t suck and blow at the same time”. What he meant was that you cannot seek to enforce some parts of a contract while simultaneously breaching others. That is what happened to Rand A Technology Corporation in a recent case: they breached the termination clause in the employment contract by paying less than they were required to but, when the employee complained, they tried to rely on that same termination clause to limit their liability. They lost.
Employers want to protect their proprietary interest in maintaining client relationships within reason but need to be careful not to overreach when drafting a non-solicitation clause. These clauses are particularly important for sales employees.
Employers and HR professionals should ensure that they are following the correct protocols and steps when it comes to a termination without cause in Ontario and should know what to look out for. This article provides an overview of terminations without cause in Ontario, so that you can feel better prepared.