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Discussions on Human Resources, Employment Law, Payroll and Internal Controls

termination

By | 2 Minutes Read

Court nixes valid termination clause because of illegal conflict of interest and confidentiality clause

In Henderson v. Slavkin et al., 2022 ONSC 2964 Justice Carole Brown dealt with the legality of an ESA Termination  Clause. The actual termination clause itself was found to be OK, but both the confidentiality clause and the conflict of interest clause had the following sentence.

By | 4 Minutes Read

Termination clause update: ousting the common law and the danger of fixed penalties

A "termination clause" is a type of contractual term which specifies entitlements owed to a worker at the end of their employment. They come in many different shapes and sizes. Whatever the construction, the usual motivation for employers in drafting termination clauses is to control costs and provide for certainty at the end of the employment relationship.

By | 3 Minutes Read

Specific penalty clause renders an ESA termination clause unenforceable

If followed, a recent Ontario case could result in the elimination of many specific penalty clauses in employment contracts. A specific penalty clause states that if an employee engages in a specific behaviour then the employee agrees s/he can be terminated for just cause without any notice or termination pay in lieu of this notice.

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