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.
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.
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.