Tag: Termination of Employment

A Cautionary Tale: Appellate Court Upholds Judgment Against Employer for Punitive Damages, Aggravated Damages and “Unusually High” Costs

· 5 min read

In Ruston v. Keddco MFG. (2011) Ltd., 2019 ONCA 125 (CanLII)(Keddco), a unanimous Court of Appeal for Ontario upheld a substantial damages and costs award against an employer that breached its “duty of good faith and fair dealing in the manner of dismissal.” The Keddco decision serves as an important reminder for employers across Canada…

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…

OLRB Finds Global Payroll not to be Considered in Calculation of ESA Severance Pay

· 4 min read

In Doug Hawkes v. Max Aicher (North America) Limited, the Ontario Labour Relations Board (OLRB) addressed the issue of whether an employer’s global payroll should be considered in determining an employee’s entitlement to severance pay under the Employment Standards Act, 2000 (ESA). The OLRB determined that global payroll should not be included for the purposes…

Cause Termination Upheld Where Employee Found to Have Installed Spyware on Employer’s Computer

· 4 min read

The Ontario Superior Court of Justice recently upheld a cause termination where an employee was found to have installed spyware onto his employer’s computer. The Court also considered the availability of the “after-acquired cause” defence In Sankreacha v. Cameron J. and Beach Sales Ltd., the plaintiff’s employment as a service advisor in the automotive department…

“ESA-Only” Termination Clause Complied with ESA but Failed to Rebut Presumption of Common Law Notice

· 5 min read

The Divisional Court recently upheld a decision of the Superior Court of Justice which held that a termination clause in an employment contract which complied with the Employment Standards Act, 2000 (ESA) failed to clearly rebut the presumption of entitlement to common law notice. The plaintiff was therefore owed reasonable notice. In Movati Athletic (Group)…

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 of Appeal Upholds Cause Dismissal for Breach of Fiduciary Duty

· 3 min read

In the case of Dunsmuir v. Royal Group, Inc., the Ontario Court of Appeal recently upheld the cause termination of a Senior Vice-President and Chief Financial Officer of a publicly-traded company for breach of fiduciary duty. The employee had commenced a claim against the employer for wrongful dismissal and sought approximately $6.6 million in damages….

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…