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Termination clause

Handbook containing termination clause not binding

In Cheong v Grand Pacific Travel & Trade, (2016 BCSC 1321), Justice Warren held that an Employee Handbook containing an ESA only termination provision was unenforceable for the following reasons:

 

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Top employment law cases of the 2010s

In order of appearance, from newest to oldest, here are the employment law cases that shaped Ontario and to some extent every jurisdiction in Canada in the 2010s:

 

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“Failsafe” language fails to save termination provision

If a contractual termination clause provides for “the greater of” ESA entitlements and a set amount, will the guarantee of “the greater of” act as a failsafe if the rest of the provision is contrary to the provisions of the ESA?

 

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Hiring seasonal workers for the holidays? 10 things employers need to know

As retailers and other seasonal employers gear up for the holiday rush, many hire additional temporary staff to ensure they are ready for crowds of shoppers and extended holiday hours.

 

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Is the termination clause in my employment agreement enforceable?

In this article, we consider some of the circumstances that can result in a termination clause being found unenforceable.

 

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Wrongful dismissal update: Alleging just cause is a legal minefield

A recent case (Headley v. City of Toronto, 2019 ONSC 4496 (CanLII)) shows that alleging just cause for termination for a long-service employee can be a risky and costly strategy.

 

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Excluding STD and LTD during notice period voids termination clause

In Cormier v 1772887 Ontario Limited c.o.b. as St Joseph’s Communications (2019 ONSC 587), Justice Perell had to determine the enforceability of the following ESA termination clause:

 

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Failure to repeat termination clause after multiple promotions voids clause

In McKercher v Stantec Architecture (2019 SKQB 100), Justice Elson had a situation where at the time of his hiring as a staff architect, the plaintiff signed an enforceable contract limiting his notice to a maximum of 3 months.

 

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OCA upholds ESA related termination clause

In Nemeth v Hatch (2018 ONCA 7), the Court was faced with the following termination clause:

 

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Is 36 months the new 24?

For a long time, the common law notice period had an “unofficial” cap of 24 months, which was generally reserved for very long-service, senior level management. In recent years, things have changed and longer notice periods are becoming the norm.

 

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Three popular articles this week on HRinfodesk

The three popular articles this week on HRinfodesk deal with termination clauses, 2018-2019 payroll rates and changes to the Employment Insurance Act.

 

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Court of Appeal partially invalidates release of notice entitlements

This blog focuses on the issues surrounding statutory minimums and waiving out, leaving the issue of restrictive covenants raised in the cross appeal for another day.

 

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Will a judge enforce the termination clause in your organization’s employment contract?

Although it is theoretically possible to limit an employee’s rights on termination to ESA minimums, it is difficult to do so in practice because trial judges are reluctant to enforce them.

 

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Ontario Court of Appeal finds clarity in termination clause

The Court’s reversal in this case, while favourable to employers, emphasizes the occasional unpredictability of the law in this area. It is prudent to periodically review your contractual termination provisions for new hires.

 

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Putting on the brakes: Ontario courts are limiting the scope post-dismissal mitigatory earnings

Employers must be aware that it is now an increasingly risky strategy to fight a wrongful dismissal case on the hopes of saving money via employee mitigation of loss.

 

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