Ontario Court of Appeal Rules (Again) on the Enforceability of an ESA-Only Termination Clause

The Ontario Court of Appeal has once again considered a minimum entitlements clause in an employment contract and ruled it to be generally enforceable. In Nemeth v Hatch Ltd., an employee with 19 years service was dismissed with 8 weeks’ notice of termination and 19.42 weeks’ salary as severance pay, as well as continued benefits…

Court of Appeal Considers Continuity of Employment Where Employer Purchased Some Assets of Former Employer

In Krishnamoorthy v. Olympus Canada Inc., the Ontario Court of Appeal recently considered the issue of continuity of an employee’s employment following the sale of a business, and in particular, where the sale of business involves the acquisition of only some of the vendor company’s assets. The plaintiff, Krishnamoorthy, became employed with Carsen Group in…

Appellate Court Rules that Severability Clause Can’t Save a Partly Flawed ESA-Only Termination Clause

It is critical for all employers to ensure that they have a well-drafted and unambiguous termination clause which fully complies with the Employment Standards Act, 2000 (ESA), in order to survive judicial scrutiny. The Ontario Court of Appeal has once again weighed in on termination provisions in employment agreements, this time noting that if any…

Benefits Canada Publishes an Article by Thomas Agnew on Termination in Employment Contracts

Hicks Morley’s Thomas Agnew authored an article in Benefits Canada titled “Employers Given Mixed Messages on Termination in Employment Contracts.” Employment contracts often contain clauses limiting an employee’s entitlement upon termination to the minimum entitlements under the Employment Standards Act or any other amount the employer and employee have agreed to. However, if the clauses violate the act in any way, courts may not enforce them.

OBA: 14th Annual Current Issues in Employment Law – Webcast Replay

Topic Enforceability of Employment Contracts since Machtinger Practical advice on how to draft, enforce and challenge termination clauses in light of evolving caselaw How recent developments may impact your drafting and the advice you provide: from early termination of fixed term contracts, to severability and probationary clauses and more Agenda