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.
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.
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.