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….
Tag: Employment Contracts
Supreme Court of Canada Considers Duty of Good Faith Performance of Contracts
In one of its final decisions of 2020, C.M. Callow Inc. v. Zollinger, the Supreme Court of Canada held that parties to any and all contracts (which would include employment contracts) cannot lie or otherwise knowingly deceive each other about matters directly linked to the performance of the contract. This type of deceptive conduct is…
Ontario Court of Appeal Comments on Notice Entitlements Following an Asset Transaction
In Manthadi v. ASCO Manufacturing, the Ontario Court of Appeal unanimously found that summary judgment was not appropriate in a case where a plaintiff was awarded 20 months’ reasonable notice damages after one month service with a company (Purchaser) that had bought the assets of her former employer (Vendor). The Court set aside the summary…
Appellate Court Holds Termination Clauses Must Be Read Together – If One Contravenes the ESA, All Are Unenforceable
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…