Labour Notes® Newsletter Features Article by Ryan Plener on Termination Clauses and Proper “Failsafe” Language Ruling by the Appeal Court
The July 24, 2018 issue of Labour Notes® newsletter features an article authored by Hicks Morley lawyer Ryan Plener.
In the article “Appeal Court Rules on Termination Clauses and Proper ‘Failsafe’ Language,” Ryan discusses how a recent decision by the Ontario Court of Appeal, where it reversed the lower court decision, could serve as an example to clarify the different interpretations of the employment contract provisions which limit entitlements upon termination.
The Court reversed a lower court decision and found that a clause in an employment contract, which limited the employee’s entitlements on termination, was enforceable. It also concluded that a “failsafe provision” in the clause (a “catch-all” provision which stated that the employee shall always receive his entitlements under the Employment Standards Act, 2000 (ESA)) was not a severability provision but ensured that any non-compliant part of the clause could be “read up” to comply with the ESA.