Court Examines Parties’ Intentions and Severability Clause in Upholding ESA-Only Termination Provision

Over the past few years, the Ontario Superior Court has rendered several decisions which consider the enforceability of termination notice provisions in employment contracts that provide only for the Employment Standards Act, 2000 (“ESA”) minimum entitlements. Depending on the specific wording used, many of these provisions have been held to be unenforceable for non-compliance with…

Appeal Court Decision Underscores Importance of Clear Terms of Hire at Outset

In a recent decision, Holland v. Hostopia.com. Inc., the Court of Appeal for Ontario found that a termination provision in an employment agreement purporting to limit the appellant’s entitlements upon termination of employment to the statutory minimums under the Employment Standards Act, 2000 (“ESA”) was unenforceable due to lack of consideration. The appellant had commenced employment…

Federal Post – First Edition

Dear Friends, We are excited to bring to you our first edition of the Federal Post, a newsletter designed exclusively for federally regulated employers. The Federal Post discusses issues that are topical, timely and important. It will cover the gamut of matters which impact your workplace, from human rights to minimum standards to labour relations…

Courts Differ on Termination Provisions and Need for Future Compliance with ESA

Over the last few years, courts have been reluctant to enforce different “ESA only” termination provisions due to ambiguity. However, not all judges have taken the same position with respect to what constitutes an ambiguous termination provision. The following two cases offer differing views on termination provisions in employment contracts and future compliance with the…

(Yet Another) Ambiguous “ESA-only” Termination Provision Unenforceable

Another “ESA-only” termination provision in an employment contract has been found unenforceable by the Ontario Superior Court. In Howard v Benson Group, the Court decided that the termination provision providing only Employment Standards Act, 2000 (“ESA”) minimum entitlements was ambiguous; therefore, the common law applied and the plaintiff was entitled to reasonable notice of termination….

Termination Clause in Federal Employment Agreement Enforceable

The recent decision in Luney v. Day & Ross Inc. is good news for employers. The Plaintiff worked for an interprovincial trucking company subject to the Canada Labour Code (“Code”). The Defendant terminated the Plaintiff’s employment without cause and offered the Plaintiff a severance package that it asserted was consistent with the termination clause in…