Most employment contracts operate for an indefinite period. Lesser seen are fixed term agreements. The latter are most often used in the context of a sale of business and in the not-for-profit sector (where funding is frequently tied to time-limited grants). Regardless of their underlying motivation, fixed term contracts come with significant risks for employers.

When Ontario courts assess whether an employee has been wrongfully dismissed, they often start by referencing the 1960 decision of Bardal v. Globe & Mail Ltd., 1960 CanLII 294 (ON SC).

Bardal directs courts to consider several factors specific to the employee when determining appropriate severance, including: 1) character of the employment; 2) length of service; 3) age at the time of termination; and 4) availability of similar employment.

A recent decision from Ontario's Court of Appeal, North v. Metaswitch Networks Corporation, confirms how the courts in our province will assess an employee's severance entitlement where his/her employment was governed by a written agreement that includes a termination provision.

Vey Willetts LLP is pleased to announce the launch of the first Severance Pay Calculator tailored specifically for the needs of employees and businesses in Ottawa and Eastern Ontario.