With Ontario expected to lift the state-of-emergency shortly and the resumption of non-essential business operations, employers may begin to consider recalling employees who have been temporarily laid-off or placed on a deemed job-protected leave.
termination for cause
Earlier this year, the Ontario Court of Appeal in Waksdale v Swegon North America Inc. struck down a termination clause. This was not groundbreaking as this court has struck down a number of termination clauses in recent years.
Employers across Ontario are double-checking their contracts since the Ontario Court of Appeal released its judgment in Waksdale v Swegon North America Inc., earlier this month. The court held that if an Employment Agreement contains a termination-with-cause provision that breaches the Employment Standards Act, 2000 (ESA), the termination-without-cause provision will be rendered unenforceable as well. This is true even if the employer was not relying on the for cause section and had proceeded on a without cause basis. Even a severability clause cannot save a provision in this context.