The law on restrictive covenants is all about context. Restrictive covenants typically arise in a sale of a business agreement or an employment contract. If you are drafting a restrictive covenant or determining whether a covenant is enforceable, you must be aware of the context because the applicable legal principles vary based on the context….
Tag: Employment Contracts
Ontario Court Upholds Forfeiture-On-Resignation Provision of Equity Incentive Plan
In a decision released on September 12, 2013,[1] the Ontario Superior Court of Justice upheld the enforceability of a provision of an employer’s incentive compensation plan pursuant to which unmatured awards are forfeited upon an employee’s resignation. The Court held that the provision was a permissible loyalty incentive rather than an unlawful restraint on trade….
OCA Upholds Termination Clause in Employment Contract
In a recent decision, Dimson v. KTI Kanatek Technologies Inc., the Court of Appeal for Ontario found that the termination provision in an employment contract was enforceable and did not violate the Employment Standards Act, 2000 (“ESA”). At issue were the following contract provisions: Section 18 (c) In addition, [the employer] may terminate this Agreement…
OCA Affirms Termination Clause in Employment Contract Does Not Violate ESA
The Court of Appeal for Ontario has upheld a motion judge’s finding that a termination provision in an employment contract was not an attempt to contract out of the Employment Standards Act, 2000 (“ESA”). In Dimson v. KTI Kanatek Technologies Inc., the plaintiff had been terminated and in accordance with his employment contract, he was…
The Employment Standards Act and Employment Contracts
Employers who are party to an employment contract which stipulates an employee is limited to the minimum statutory entitlements upon termination should be sure that those termination provisions are not offside the Employment Standards Act, 2000 (“ESA”). Otherwise, an employer may find that the provisions are not enforceable and that it is liable for payment…
Drafting Termination Provisions in Employment Contracts
Two cases of the Ontario Superior Court serve as reminders that termination provisions in employment contracts must be compliant with the Employment Standards Act, 2000 (“ESA”) for all purposes; otherwise they may be found void and unenforceable by a court. In the first decision, Wright v. Young and Rubicam, the Court found that while a…
2013 Winter Edition
FOCUS ON BARGAINING Hard bargains LEGAL DEVELOPMENTS The OLRB declines to interfere with legitimate subcontractor relationship Employment contracts: how to get it right and help your chance of success PROFILE Quick study Download PDF
Raising the Bar – Fourth Edition
“I’m so glad I live in a world where there are Octobers.” L.M. Montgomery Dear Friends, We are pleased to provide you with the fourth issue of Raising the Bar. Our batteries are recharged following a summer break, and we are ready for autumn! In this issue, we share with you recent decisions that you…
Discipline, Not Termination, More Appropriate in Case of Single Incident of Misconduct
In a case that has garnered much attention, Barton v. Rona Ontario Inc., the Ontario Superior Court has found that discipline of a managerial employee would have been a more effective sanction than termination where that employee, in a single incident of misconduct, breached the employer’s health and safety rules. At the time of the…
2008 Summer Issue
PRACTICE PROFILE Class actions with an HR twist LEGAL DEVELOPMENTS Mitigation of damages: Strategic considerations for employers Changing a term of employment? Notice may not be enough PROFILE A Pension Benefit Download PDF