Earlier this year, the Ontario Court of Appeal released its landmark decision in Waksdale v. Swegon North America Inc. This decision has now been relied on by the Ontario Superior Court of Justice to strike down another termination clause in Sewell v. Provincial Fruit Co. Limited.
termination with cause
Almost all employers require new employees to sign an employment contract. And almost all employment contracts have a termination clause. And most of the termination clauses have a provision which states that the employer has the right to terminate an employee for just cause without notice. This case suggests most of these termination clauses are not enforceable.
If an employer terminates an employee without cause, it means they don’t have to provide a reason, but they do have to provide “notice”.