Tag: Employment Contracts

Appellate Court Holds Termination Clauses Must Be Read Together – If One Contravenes the ESA, All Are Unenforceable

· 4 min read

In Waksdale v Swegon North America, the Ontario Court of Appeal ruled that the “without cause” and “with cause” termination clauses in an employment contract must be read together: if one is not compliant with the Employment Standards Act, 2000 (ESA), both are unenforceable. The plaintiff employee sued the defendant employer for damages for wrongful…

Appellate Court: Employee Can’t Transform Employer’s Supportive Leniency (Allowing Flexibility in Her Start Time) into Contractual Obligation

· 4 min read

The Ontario Divisional Court recently considered the issue of whether flexibility offered by an employer to an employee alters a fundamental term of the employee’s employment contract. In Peternel v. Custom Granite & Marble Ltd., the Divisional Court upheld a trial judge decision that the employee’s 8:30 a.m. start time at work was an existing…

$1.27 Million Damages Award a Reminder to Employers of Perils Associated with Fixed Term Contracts

· 4 min read

In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), the Ontario Superior Court of Justice awarded a plaintiff over $1.27 million in damages for constructive dismissal after only one year had elapsed of a 10 year consulting services agreement (Agreement). In the absence of a cancellation provision, the defendant was obligated to pay the Agreement…

Appellate Court Finds Waiver of Common Law Notice Valid, Considers Continuity of Service under ESA

· 4 min read

In Ariss v NORR Limited Architects & Engineers, the Ontario Court of Appeal upheld a decision of a motion judge who considered the appellant’s entitlements under the common law and the Employment Standards Act, 2000 (ESA) upon termination. Background In 1986, the appellant began employment with a company which was sold to the respondent employer…

Supreme Court of Canada Grants Appeal in Case Which Considered Constructive Dismissal, Long-Term Incentive Plan Entitlements and Duty of Good Faith

· 3 min read

The Supreme Court of Canada has granted leave to appeal from a decision which considered long-term incentive plan entitlements as part of a constructive dismissal claim, and, in the dissent, the duty of good faith and honesty in the performance of employment contacts. In Ocean Nutrition Canada Ltd. v. Matthews, an employee resigned from employment…

Appellate Court Considers Employment Issues Arising out of a Termination Post-Sale of Business

· 5 min read

In Kerzner v American Iron and Metal Company Inc., the Ontario Court of Appeal considered a number of complex issues arising out of a sale of business and successive employment contracts entered into after that sale. The Court provided guidance on what can and cannot be agreed to during those transitions and how releases should…

OMHRA Fall ECHO Newsletter Features Two Articles by Jessica Toldo

The Fall 2018 issue of OMHRA’s ECHO newsletter features two articles co-authored by Hicks Morley lawyer Jessica Toldo.

In the article “Considerations for Municipal Employers When Drafting Termination Clauses in Employment Contracts,” Jessica discusses the importance of municipal employers having a clear and well-crafted termination provision to minimize the risk that a reviewing court will find the clause to be unenforceable, should litigation arise and highlight five key considerations when drafting termination clauses in light of some important developments in the case law.

The second article authored by Jessica, “HRTO Determines Requiring Proof of Eligibility to Work in Canada on a Permanent Basis is Discriminatory,” reviews a recent case where the Human Rights Tribunal of Ontario found that a pre-employment ‘permanence requirement’ was discriminatory on the basis of the applicant’s citizenship.

Court Upholds ESA-Only Termination Clause Which Did Not Expressly Mention Benefits

· 4 min read

The Ontario Superior Court of Justice recently upheld a termination clause in an employment contract which limited entitlements upon termination to the minimum available under the Employment Standards Act, 2000 (ESA) but which did not make explicit reference to the continuation of benefits during the statutory notice period. In Burton v. Aronovitch McCauley Rollo LLP,…

Appeal Court Rules on Termination Clauses and Proper “Failsafe” Language

· 4 min read

The differing interpretations by the courts of employment contract provisions which limit entitlements upon termination has caused considerable confusion of late. The Ontario Court of Appeal has rendered a helpful decision which may serve to lessen some of the confusion. The Court reversed a lower court decision and found that a clause in an employment…