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Wrongful Dismissal, Employment Contracts Kevin Patrick Robbins Wrongful Dismissal, Employment Contracts Kevin Patrick Robbins

Employer Alert: Ontario Court of Appeal Makes Major Change to Termination Clause Interpretation

A recent decision from the Court of Appeal for Ontario has the potential to render many existing contractual termination clauses unenforceable. This development will have a major impact on employee severance rights and the costs employers may be required to incur when dismissing workers.

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Employment Contracts, Wrongful Dismissal Kevin Patrick Robbins Employment Contracts, Wrongful Dismissal Kevin Patrick Robbins

Is the termination clause in my employment agreement enforceable?

One of the issues we commonly encounter, when speaking with both individuals and employers, is whether the language in their employment contract addressing termination is enforceable.

For employees, where a termination provision is unenforceable, it can mean they have an entitlement to increased severance. Whereas for employers, if the clause does not hold, it can create uncertainty and result in unintended liability.

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Wrongful Dismissal, Dismissal, Employment Contracts Kevin Patrick Robbins Wrongful Dismissal, Dismissal, Employment Contracts Kevin Patrick Robbins

Termination clause update: New developments concerning benefit continuation and just cause language

We are not long into 2019 and yet one thing already seems clear – the law concerning employment contract termination clauses will continue to be the focus of a great deal of litigation in Ontario. In just the past few months alone, new decisions from the Superior Court have helped to advance the law and provide further guidance to employers on proper drafting of termination clauses.

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Employment Contracts, Wrongful Dismissal Kevin Patrick Robbins Employment Contracts, Wrongful Dismissal Kevin Patrick Robbins

Amberber v. IBM Canada Limited: Termination clause fails to rebut employee’s entitlement to reasonable notice

Vey Willetts LLP was recently successful in defeating a summary judgment brought by IBM Canada Limited. This decision, Amberber v. IBM Canada Limited, serves as an important reminder to employers of the need to draft contractual termination clauses with a high degree of clarity, or risk unanticipated liability in the event of a without cause dismissal.

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