A "termination clause" is a type of contractual term which specifies entitlements owed to a worker at the end of their employment. They come in many different shapes and sizes. Whatever the construction, the usual motivation for employers in drafting termination clauses is to control costs and provide for certainty at the end of the employment relationship.
It is a well-established principle of Ontario employment law that, barring exceptional circumstances, the maximum severance period an employee can expect to receive upon dismissal tops out at 24 months. Ontario’s Court of Appeal has reaffirmed this point time and again.
Calculating notice periods, dealing with wrongful dismissal claims, and considering the pandemic as a factor in a reasonable notice period are discussed in this article.