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Discussions on Human Resources, Employment Law, Payroll and Internal Controls

Termination clause

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BC case deals with enforceability of handbook termination clause, when a termination took place and frustration under COVID

In Verigen v. Ensemble Travel Ltd., (2021 BCSC 1934) Justice Milman had a situation of a 55 year old Business Development Director (really more of a sales person) with 13 months service who was given a temporary layoff notice at the beginning of COVID.

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Sophistication of the employee does not affect legality of termination provision

In Livshin v The Clinic Network Canada (2021 ONSC 6796) Black J. had situation where the termination clause breached the ESA in that they referenced ”just cause” as a a ground for paying no severance, which following Waksdale v Swegon, (2020 ONCA 391) is illegal and voids the entire termination clause, including the “not for cause” provision.

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Fixed term contracts and bad term clause

What do you get when you combine a fixed-term contract, an unenforceable termination clause and an early termination? In short, an employee that will be paid for the balance of the contract and an employer with an unexpected severance obligation.

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