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

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…

Benefits Canada Publishes an Article by Thomas Agnew on an Employer’s Right to Change Job Conditions

Hicks Morley’s Thomas Agnew authored an article in Benefits Canada titled “Court Confirms Employer’s Right to Change Job Conditions.” In a recent decision, the Ontario Superior Court of Justice found that an employer didn’t constructively dismiss a long-service employee when it provided the individual with 18 months of working notice prior to asking her to enter into a new employment contract that included changes to vacation pay and a signing bonus…

Workplace Law in Canada: A Primer

This Guide provides American employers with an introduction to employment laws and regulations that affect businesses in Canada. It outlines an overview of the main differences between Canadian and U.S. workplace laws.

Court Finds Employer Took Appropriate Steps to Change Terms of Employment – No Constructive Dismissal

In Lancia v. Park Dentistry, the Ontario Superior Court found that an employer who wished to change the terms of employment did not constructively dismiss a long-term employee because she was provided with 18 months’ working notice as well as a new contract with a signing bonus. The plaintiff worked as dental hygienist for the…

Ontario Court Finds Investment Firm Liable for Defamation in a Notice Of Termination Filed with IIROC and Orders Correction

The Ontario Superior Court has found that an investment firm defamed one of its former traders when it filed a Notice of Termination (NOT) with the securities regulator indicating the trader’s employment had been terminated for failing to follow trading policies and engaging in unauthorized trading. The Court concluded that there was no cause for…

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…

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.