While monetary damages are the usual result of legal actions, we all know that in some contexts, reinstatement is a potential remedy. It can occur in grievance arbitrations, human rights claims, and other circumstances.
The impact of this decision will likely be very substantial for a number of reasons. By requiring federally-regulated employers to always provide just cause when terminating non-unionized employees, the Court significantly expanded on the common law and statutory protections available to a large part of the working population. As a consequence of this decision, employees of federally-regulated employers will now be awarded a significantly higher degree of employment protection than their colleagues in the private sector, whose rights are largely governed by less protective provincial laws.
In the past three years there have been a number of cases arising from the Ontario courts considering whether or not termination clauses which purport to rebut the implied presumption of common law notice and limit an employee’s entitlements upon termination are enforceable. The enforceability of such clauses can have significant consequences on the quantum of an individual’s damages because an employee’s common law entitlements typically exceed his/her minimum entitlements under the applicable minimum standards legislation. The Ontario Division Court recently considered the enforceability of a termination clause in the federal sector in Luney v. Day Ross Inc., 2015 ONSC 1440.