Wood v Fred Deeley Imports Ltd.

Employer unsuccessful in voiding unfavourable termination clause

May 12, 2017 Vey Willetts LLP Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation

A recent decision from the Ontario Court of Appeal dealt with the unusual situation of a defendant employer arguing that its own contractual termination provision was unenforceable and thus the plaintiff employee was entitled to common law reasonable notice. Employees frequently challenge the enforceability of a termination provision to seek common law notice, however, it is rare that an employer would do the same.

common law notice, employment law, employment standards act, ESA, Roberts v. Zoomermedia Limited, termination, Termination clause, termination provision, Wood v Fred Deeley Imports Ltd.

Contract enforceability: Signing the employment contract prior to the start date

March 16, 2017 Lisa Stam, Spring Law Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Recruiting and Hiring, Source Deductions and Reporting, Wages and Compensation

When an employee is terminated without cause and offered a package that is very modest, but otherwise compliant with the employment contract, a common first step for his or her lawyer will be to see if the contract can be set aside. If the contract can be declared void, the employee can try to pursue the typically much greater common law damages. There are several grounds upon which courts have set aside either the full contract or at the least, the termination provision. This blog post will focus on the issue of signing the contract prior to the start date.

common law damages, dismissal without cause, employment contract, employment law, employment standards act, signing employment contract, Wood v Fred Deeley Imports Ltd.

Wood vs. Oudin: Clarity in termination provisions

March 3, 2017 Rudner Law, Employment / HR Law & Mediation Employee Relations, Employment/Labour Standards, HR Policies and Procedures, Human Resources, Notice, Damages and Settlements, Payroll, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation

In Wood v Fred Deeley Imports Ltd., the Ontario Court of Appeal seemed to make a definitive statement about the interpretation of termination provisions in employment agreements: a court will invalidate them when they contain actual or technical deficiencies. However, the same Court’s decision last year in Oudin v Centre Francophone de Toronto seemed to reach a different conclusion: the court will apply contractual certainty to give effect to the parties’ intentions. Can the two be reconciled? Closer inspection reveals that each decision is specific to the employment agreements in each.

employment agreement, employment law, employment standards act, ESA, Oudin v Centre Francophone de Toronto, saving clause, termination, Termination provisions, Wood v Fred Deeley Imports Ltd.