Following the release of the Ontario Court of Appeal’s decision in Waksdale v. Swegon North America Inc. in June 2020, many employers are facing the realization that the termination provisions in their contracts may be unenforceable and in need of amendment, thanks to illegal for cause provisions.
Employment relationships may come to an end for several reasons. The reasons for the separation, and the type of dismissal that occurs, will impact an employer’s obligations to the terminated employee.
A few months ago we commented on a case where a fixed term contract caused an employer significant liability because it did not allow for early termination prior to the end of the fixed term. The Ontario Court of Appeal recently released a decision, Howard v. Benson Group Inc., which provides a further warning about the use of fixed term contracts.