Tag: Employment Contracts

Employment Termination Clauses Under Scrutiny – The Latest Update

· 5 min read

In Dufault v. The Corporation of the Township of Ignace, the Ontario Superior Court of Justice found the termination provisions of a fixed-term employment contract did not comply with the Employment Standards Act, 2000 (ESA) because, among other things, it permitted the employer to terminate the employee’s employment without cause in the employer’s “sole discretion”…

Court Finds Employee’s Contract Frustrated for Failing to Comply with Mandatory Vaccination Requirements

· 3 min read

In Croke v VuPoint Systems Ltd., the Ontario Superior Court of Justice recently found that an employee’s failure to comply with his employer’s vaccination requirements amounted to a frustration of contract, disentitling the employee to wrongful dismissal damages at common law. The employer, VuPoint, provided installation services for Bell Canada. The employee exclusively worked for Bell,…

Beyond COVID-19: 2022 Year in Review – Cases and Legislation of Note

· 21 min read

Employers and human resource professionals will undoubtedly remember 2022 as another year shaped by the pandemic.

But…there were also legal developments in 2022 that were not related to COVID-19. In this FTR Now, we look at some of the past year’s notable “non-pandemic” cases and legislative developments.

Ontario Court of Appeal Upholds Waksdale – Overturns Superior Court Decision That Attempted to Distinguish It

· 2 min read

On June 8, 2022, in Rahman v. Cannon Design Architecture Inc., the Court of Appeal reiterated that Waksdale is supreme in Ontario. The Decision Below In September 2021, a judge of the Superior Court determined on the facts of the case before him that a contractual provision in an employment agreement which denied entitlements upon…

Appellate Court Finds Non-Competition Clause in Employment Agreement to be Unenforceable

· 4 min read

In M & P Drug Mart Inc. v Norton, the Ontario Court of Appeal upheld the decision of an application judge which had found a non-competition clause in an employment agreement to be ambiguous and overly broad, and therefore unenforceable. Background In 2014, Mr. Norton, with the assistance of legal counsel, entered into an employment…

Court Distinguishes Waksdale in Case Where Employer and Employee had Equal Bargaining Power in Negotiating Contract

· 9 min read

In Rahman v Cannon Design Architecture Inc., a recent decision of the Ontario Superior Court of Justice, the Court distinguished the Ontario Court of Appeal’s landmark decision in Waksdale v Swegon North America, finding that on the facts of the case a provision which denied entitlements upon termination for just cause did not amount to…

Supreme Court of Canada Denies Leave to Appeal in Case Where Termination Clause in Employment Contract Found to be Unenforceable

· 4 min read

On March 18, 2021, the Supreme Court of Canada dismissed an application for leave to appeal from a decision of the New Brunswick Court of Appeal, Abrams v. RTO Asset Management. In that case, the New Brunswick Court of Appeal (Court) held an employer could not assert that dismissal was for cause where the employer’s…

Supreme Court of Canada Clarifies Principle of Good Faith in Contracts

· 4 min read

On February 5, 2021, the Supreme Court of Canada released its decision Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District, in which it commented on and clarified the principle of good faith in contracts, a principle previously recognized by the Court in Bhasin v. Hrynew.   Background The case involved a contract between…

Ontario Court of Appeal Upholds $1.27 Million Damages Award Against Employer for Breach of Fixed-Term Employment Contract

· 4 min read

In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), the Ontario Court of Appeal upheld a lower court decision awarding the respondent over $1.27 million in damages for constructive dismissal. Background The respondent had sold his family’s funeral business to the appellant employer and entered into a 10-year transitional consulting services agreement (TCSA) in 2012….