termination clauses

Termination clauses: (Yet) another one bites the dust

January 7, 2020 Doug MacLeod, MacLeod Law Firm Employee Relations, Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll, 0

I advise employers and employees and therefore regularly draft and review termination clauses. The issue of whether a termination clause complies with the minimum notice requirements set out in the Employment Standards Act (the “ESA”) may be the most litigated issue in employment law over the past 5 years. So employment lawyers like me pay close attention to what the courts are saying on this issue.

contract negotiations, employment contracts, employment law, Employment Stadards Act, termination clauses

Doug’s top 5 employment law stories of 2019

December 10, 2019 Doug MacLeod, MacLeod Law Firm Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Wages and Compensation, 0

We have started the last month of 2019 and it is time for my annual top employment law stories of the year. 2019 has been a relatively good news year for Ontario employers.

aggravated damages, employment law, Just cause termination, reasonable notice period at common law, termination clauses, variable compensation

Termination clauses: Not just for indefinite employees

October 23, 2018 Devan Marr Human Resources, Notice, Damages and Settlements, Payroll, Recruiting and Hiring

In a recent decision, Ontario’s Divisional Court reminds us of the importance of proper termination clauses in fixed term contracts. In Ferguson v. Mitsche & Aziz Inc., the Divisional Court upheld a Small Claims judgment awarding the maximum $25,0000.00 limit in damages to an employee who was dismissed five months into her one-year fixed term contract.

damages award, employment contract, employment law, small claims court decision, termination clauses

Three popular articles this week on HRinfodesk

February 15, 2018 Yosie Saint-Cyr, LL.B. Managing Editor Employee Relations, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting

The three popular articles this week on HRinfodesk deal with the interpretation and enforceability of termination clauses, changes and improvements to services, benefits and credits for Canadians for the new tax filing season and improved ways for businesses to meet their reporting obligations.

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5 employment law predictions for 2018

December 20, 2017 Simon Heath, BA, MIR, LLB, Heath Law Employee Relations, Employment/Labour Standards, Health and Safety, HR Policies and Procedures, Human Resources, Human Rights, Notice, Damages and Settlements, Payroll, Penalties and Fines

What’s in store in 2017 for HR and payroll

‘Tis the Season and 2017 is coming to a close. With this, I am predicting some of the trends to follow from an employment law perspective of 2018. Here are 5 trends to follow in the new year.

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Case study: Why you need to periodically review your employment contract

November 7, 2017 Doug MacLeod, MacLeod Law Firm Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Recruiting and Hiring

A well-drafted employment contract is the best employment law investment an employer can make. It can enhance or expand management’s rights, and it can save the employer thousands of dollars in termination costs.

amount of notice of dismissal, employment contract, employment law, ESA only termination clauses, fixed-term contract, termination clauses

Top 5 mistakes employers make in their contracts

October 30, 2017 Jeff Dutton, Dutton Employment Law Employee Relations, Employment/Labour Standards, Human Resources, Notice, Damages and Settlements, Payroll, Recruiting and Hiring, Wages and Compensation

Employment contracts are a useful tool for employers. But often, employers make mistakes when creating their contracts. Here are five of the main mistakes to watch out for.

contracts, employment contracts, employment law, fixed-term employment contract, Human Resources, non-compete clause, restrictive covenants, termination clauses

Don’t take a chance on it: The uncertainty of ESA-only termination clauses

July 11, 2017 Occasional Contributors Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Wages and Compensation

In January 2017, the Ontario Superior Court of Justice released its decision in Cook v. Hatch upholding a less than perfect termination clause that failed to reference statutory severance pay or provide for continued health benefits during the statutory notice period. A month later, the Court of Appeal responded with its decision in Wood v. Fred Deeley Imports Ltd. where it overturned a motion judge’s ruling upholding a similar termination provision. And so, the age old debate about the enforceability of ESA-only termination provisions rages on.

contract, employment agreement, employment law, ESA entitlements, ESA requirements, Pensions and Benefits, recruiting and hiring, Severance pay, statutory notice period, termination, termination clauses, terms of employment

Generous termination clauses: Think twice before making promises #learnthelatest

April 28, 2017 Stringer LLP Conferences, Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Union Relations, Wages and Compensation

Learn the Latest at the Ontario Employment Law Conference

Many employers include termination clauses in employment contracts to limit their liability when dismissing employees. When employers draft generous termination provisions providing for more than statutory minimums, they must follow through on that generosity when terminating employees. Failing to do so could leave employers exposed to full liability under the common law.

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Uncertainty with termination clauses continues

February 17, 2017 Vey Willetts LLP Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation

There are few areas of employment law more in flux (and vexing to lawyers) than that surrounding the enforcement of termination clauses. Part of the frustration is when the Courts provide seemingly contradictory messages on whether termination clauses will be upheld. In January 2017 alone, the Ontario Superior Court of Justice released two decisions that appear, on their face, to be somewhat at odds.

Cook v. Hatch Ltd., employment contract, employment law, employment standards act, termination clauses, Vinette v. Delta Printing Limited

Fresh consideration and employment contracts

November 17, 2016 Simon Heath, BA, MIR, LLB, Heath Law Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Recruiting and Hiring, Source Deductions and Reporting, Union Relations, Wages and Compensation

When a company promotes an employee, the employer should provide the employee with a new contract to sign prior to allowing the employee to commence his or her duties. In that way, the company is providing the employee with “fresh consideration” to make the contract enforceable. Consideration is the legal word for the exchange of something of value to make contracts enforceable and in a promotion it takes the form of the increased salary that comes with the new job. If the company allows the employee to be promoted and then has the employee sign an employment contract after the promotion has already taken place, there is a chance the employee can argue the terms of the contract that were not discussed pre–promotion should not be enforced for lack of fresh consideration rendering the terms of the contract unenforceable.

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Termination clauses: Importance of clear language

November 7, 2016 Alison J. Bird Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Union Relations, Wages and Compensation

In recent years, there have been many decisions on the enforceability and interpretation of termination clauses in employment contracts—which employers and their legal counsel read with both interest and apprehension. The Nova Scotia Supreme Court has now weighed in on the debate.

Bellini v Ausenco Engineering Alberta Inc., employment law, labour standards code, reasonable notice, reasonable notice entitlement, reasonable notice of termination, Termination clause, termination clauses

Termination clauses – The legal debate

November 4, 2016 Rudner Law, Employment / HR Law & Mediation Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Union Relations, Wages and Compensation

It appears that the saga of judicial interpretation and consideration of termination clauses will continue, with predictably unpredictable results. Courts will enforce termination clauses that limit an individual’s entitlement to notice of dismissal, but the onus will be on the employer to show that the clause should be enforced.

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Small claims court rules termination clause that violates ESA in future is unenforceable

April 14, 2016 Simon Heath, BA, MIR, LLB, Heath Law Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Payroll, Wages and Compensation

This decision is another reminder to employers to ensure that termination clauses provide for all entitlements prescribed by the Employment Standards Act in order for them to be considered valid and enforceable. The company in this case should never have carved out its obligation to provide statutory Severance Pay.

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Agreement to sign an agreement

December 4, 2015 Rudner Law, Employment / HR Law & Mediation Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Wages and Compensation

The issue of whether termination clauses contained within employment agreements will be enforceable is one that routinely arises. As I have discussed on many occasions, many employers weaken their legal position by entering into a verbal agreement, or presenting an “offer letter”, and then subsequently asking their new employee to sign a far more detailed employment agreement that is designed solely for the benefit of the employer.

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