Labour Notes® Newsletter Features Article by Ryan Plener on Termination Clauses and Proper “Failsafe” Language Ruling by the Appeal Court

The July 24, 2018 issue of Labour Notes® newsletter features an article authored by Hicks Morley lawyer Ryan Plener. In the article “Appeal Court Rules on Termination Clauses and Proper ‘Failsafe’ Language,” Ryan discusses how a recent decision by the Ontario Court of Appeal, where it reversed the lower court decision, could serve as an example to clarify the different interpretations of the employment contract provisions which limit entitlements upon termination.

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 Liability in Mass Terminations

Hicks Morley’s Thomas Agnew authored an article in Benefits Canada titled “Court Decision Warns Employers About Financial Liability in Mass Terminations.” Employers should proceed carefully when it comes to mass terminations. A recent court decision in Ontario found the employer’s failure to comply with the Employment Standards Act’s technical posting requirement for mass terminations meant that the notice of termination given prior to the date of the posting was void, exposing the company to potentially significant liability for that period.

Appellate Court Finds Employee Entitled to Bonus Which Vested after the End of the Notice Period

In Bain v. UBS Securities Canada Inc., the Ontario Court of Appeal upheld a lower court decision which awarded an employee who was dismissed without cause in February 2013 his bonus entitlements for 2012 and the first three months of 2013, as well as for the 18-month notice period. David Bain worked for UBS as…

HRTO Finds No Discrimination Where Use of Medical Marijuana at Worksite Breached Zero Tolerance Policy

In Aitchison v L & L Painting and Decorating Ltd., the Human Rights Tribunal of Ontario (HRTO) found that an employer did not discriminate against the applicant when his employment was terminated for smoking marijuana while at work, which was contrary to the employer’s “zero tolerance” policy. The applicant was employed as a seasonal painter…

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…