Termination Clauses: (Yet) Another One Bites the Dust
Whether a termination clause limits an employee’s entitlement to the Employment Standards Act minimum notice is a highly litigated topic in employment law.
Whether a termination clause limits an employee’s entitlement to the Employment Standards Act minimum notice is a highly litigated topic in employment law.
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A recent case, Headley v. City of Toronto, 2019 ONSC 4496, shows that alleging just cause for termination for a long-service employee can be a risky and costly strategy.
Two recent Ontario Superior Court of Justice decisions shed light on what types of termination clauses will be upheld and which will be deemed unenforceable.
In the recent decision of Andros v Colliers Macaulay Nicolls Inc., the Ontario Court of Appeal (“OCA”) found yet another termination clause to be unenforceable. In this decision, the OCA reaffirmed and clarified various principles surrounding the enforceability of such clauses.
Unless there are exceptional circumstances, Ontario judges will not generally award more than 24 months notice period.
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