Even though the Federal Court of Appeal concluded that a without
cause termination of employment is not automatically «unjust», the Court left no doubt that not every such dismissal is just.
Not exact matches
Termination with
cause is a harsher measure, often referred to as the «capital punishment
of employment law» and means employees aren't entitled to any notice or payment in lieu
of notice.
In order to support the continuity
of senior leadership, we have
employment agreements with Ms. Katz and Messrs. Skinner and Gold which provide, among other things, for payments to the executive following a
termination of employment by the executive for «good reason» or a
termination of the executive's
employment by us without «
cause.»
The triggering events constituting «good reason» and «
cause» were negotiated to provide protection to us for unwarranted
termination of employment that could
cause harm to us as well as to provide protection to the executive.
If we terminate Mr. Drexler's
employment without
cause or he terminates his
employment with good reason, Mr. Drexler will be entitled to receive (i) a payment
of his earned but unpaid annual base salary through the
termination date, any accrued vacation pay and any un-reimbursed expenses, and (ii) subject to Mr. Drexler's execution
of a valid general release and waiver
of claims against us, as well as his compliance with the non-competition, non-solicitation and confidential information restrictions described below, (a) a payment equal to his annual base salary and target cash incentive award, one - half
of such payment to be paid on the first business day that is six (6) months and one (1) day following the
termination date and the remaining one - half
of such payment to be paid in six equal monthly installments commencing on the first business day
of the seventh calendar month following the
termination date, (b) a payment equal to the product
of (x) the last annual cash incentive award Mr. Drexler received prior to the
termination date and (y) a fraction, the numerator
of which is the number
of days
of service completed by Mr. Drexler in the year
of termination and the denominator
of which is 365, such amount to be paid on the first business day that is six (6) months and one (1) day following the
termination date, and (c) the immediate vesting
of such portion
of unvested restricted shares and stock options as provided and pursuant to the terms
of the relevant grant agreements under our 2003 Equity Incentive Plan.
This appointment follows the
termination of Dov Charney, former President and Chief Executive Officer, for
cause in accordance with the terms
of his
employment agreement.
«The vesting
of each executive's awards will accelerate upon
termination of his
employment for any reason (including a resignation for good reason) other than
cause, death or disability (as such terms are defined in such executive's
employment agreement) if such
termination takes place upon or within two years following a change in control (as defined in such executive's
employment agreement) that occurs during the term
of his
employment agreement and such executive signs a general waiver and release that has become effective.»
If the Release Requirements are satisfied, then the portion
of any payments that would otherwise have been paid during the period between the
Termination Date and the Release Date shall instead be paid as soon as reasonably practicable following the Release Date (or, if the Review Period applies and the Board has notified you that it is reviewing your cessation
of employment under the lookback provisions
of the
Cause definition, the end
of the Review Period with regard to payments that qualify as short term deferral under Section 409A
of the Code).
«The board requested
of me and authorized me to initiate the process
of termination for
cause as defined in Coach Pitino's
employment contact.»
Having worked both sides
of the union issue in public
employment, I can tell you that no union contract fails to include
termination or discipline for
cause.
I understand that there is no express or implied contract
of employment and that if employed I have been hired at the will
of the employer and that my
employment may be terminated at will, at any time: and with or without
cause the employer's only obligation being to pay salary or wages due and owing at the time
of termination.
2 (2) In the event we wish to terminate your
employment without just
cause, we agree that we will give you notice
of the
termination of your
employment, or at our absolute discretion, we will pay you, in lieu
of such notice, a severance payment equal to the wages only that you would have received during the applicable notice period.
A contract is a contract and, as expressed by Chief Justice Winkler on behalf
of a unanimous court, «From a practical perspective, it is worth repeating that if parties to an
employment agreement specifying a fixed amount
of damages intend for mitigation to apply upon
termination without
cause, they must express that intention in clear and specific language in the contract.»
The Federal Court
of Appeal acknowledged that for a very long time there had been two divergent and conflicting lines
of case law regarding the question
of whether Part III
of the Canada Code permits
terminations of employment without
cause.
However,
termination for
cause has been described by the Ontario courts as the «capital punishment»
of the
employment relationship.
When an employee's
employment is terminated without
cause, in the absence
of an enforceable
termination provision in an
employment agreement, the employee will be entitled to reasonable notice
of termination of employment at common law.
Other advanced industrial nations simply require a showing
of just
cause for
termination of employment and have a less onerous standard for recognizing constructive discharge.
The
Employment Standards Code provides that an employee can not receive less than the prescribed amount
of severance in the event
of without -
cause termination.
In summary, the Court
of Appeal held that where an
employment agreement contains a stipulated entitlement on
termination without
cause, the amount in question is either liquidated damages or a contractual sum.
Minken
Employment Lawyers is your source of expert legal advice and advocacy on terminations for cause and other employment law issues, serving Toronto, Greater Toronto Area (Markham, Newmarket, Aurora, Richmond Hill, North York, Vaughan, Woodbridge, Mississauga, Brampton, Pickering, Ajax, Stouffville, Uxbridge, Brooklin, Whitby, Oshawa etc.), Ontario, Canada as well as national and international clients for over
Employment Lawyers is your source
of expert legal advice and advocacy on
terminations for
cause and other
employment law issues, serving Toronto, Greater Toronto Area (Markham, Newmarket, Aurora, Richmond Hill, North York, Vaughan, Woodbridge, Mississauga, Brampton, Pickering, Ajax, Stouffville, Uxbridge, Brooklin, Whitby, Oshawa etc.), Ontario, Canada as well as national and international clients for over
employment law issues, serving Toronto, Greater Toronto Area (Markham, Newmarket, Aurora, Richmond Hill, North York, Vaughan, Woodbridge, Mississauga, Brampton, Pickering, Ajax, Stouffville, Uxbridge, Brooklin, Whitby, Oshawa etc.), Ontario, Canada as well as national and international clients for over 20 years.
Even in the presence
of conduct that seems to justify
termination for
cause, the misconduct must be
of such a degree that the
employment relationship is completely undermined.
legal problems they don't know that they have, e.g., one unserviced legal problem often leads to several more — e.g.,
termination of employment without
cause or compensation, means debt, loss
of property, family break - up, depression, substance abuse, and sometimes suicide, etc.; and, (3) enlist the help
of the social media, news media, pressure groups, and those political parties in opposition to governments; (4) everyone should complain loudly to all
of the above about law societies» failure to try to solve the unaffordable legal services problem — their failure to attack it is the
cause.
Given that both wrongful dismissal and constructive dismissal are characterized by employer - imposed
termination of the
employment contract (without
cause), there is no principled reason to distinguish between them when evaluating the need to mitigate.
By agreeing to an employee's entitlements in the event
of termination without
cause at the beginning
of the
employment relationship, there will be little to fight about in the event that the relationship does end in a
termination without
cause.
The
termination of her
employment «for
cause» was sent to her in writing soon thereafter.
There are a number
of legal issues to consider, including whether there are sufficient circumstances to prove just
cause, the effect
of any
employment agreement, and the amount of notice of termination or pay in lieu of notice required by the Employment Standards Act, 2000 and the c
employment agreement, and the amount
of notice
of termination or pay in lieu
of notice required by the
Employment Standards Act, 2000 and the c
Employment Standards Act, 2000 and the common law.
In some industries and for specific jobs, honesty is
of paramount importance and an employee's dishonest conduct can result in summary
termination of employment for just
cause.
Also, claiming after the fact that there was just
cause after a without
cause termination has already occurred is a dangerous move; employees suffer greatly when they are accused
of things at the end
of the
employment relationship, as it can prevent them from finding new
employment.
One
of the cases presented to me at this moot was Kathryn Leah Smithen v. Law Society
of Upper Canada, dealing with an applicant who «disclosed a criminal history
of 38 or 39 convictions for fraud - related offences between 1979 and 1993, several outstanding civil judgments, two judgments entered against her in actions involving fraud, two
terminations of employment for
cause, and two declarations
of bankruptcy.»
Do the performance deficiencies amount to «just
cause» for dismissal enabling
termination of the superintendent's
employment without notice or compensation?
DMR responded by alleging that it had just
cause for the
termination of Mr. Budge's
employment and that he therefore was not entitled to reasonable notice.
The Court
of Appeal held that when the employer terminated a fixed term
employment contract, without
cause, and there was no enforceable provision for early
termination without
cause, the employee was entitled to the compensation that he would have received to the end
of the
employment contract.
For example, if the
employment contract does not contain a
termination clause the court will find that there is an implied term in the
employment contract that the contract may only be terminated by the employer without
cause by providing the employee with reasonable notice
of notice
of dismissal.1 Express and implied terms in a contract are equivalent in effect.2
That means including an
employment «pre-nuptial agreement» or «pre-nup» — a contractual limitation on an employee's post-
employment entitlements in the event
of termination without
cause — in your
employment agreements.
Often, an employer may seek to limit its liability on
termination of employment by requiring the employee to sign a contract which purports to limit the sum which is payable on
termination of employment without just
cause.
In fact, the first Canadian court decision that addressed the issue
of termination of employment for
cause due to comments made on social media was made by the British Columbia Supreme Court in the 2014 case Kim v International Triathlon Union («Kim»).
Termination of employment in Ontario can occur in two different ways: (i) termination without cause; or (ii) termination
Termination of employment in Ontario can occur in two different ways: (i)
termination without cause; or (ii) termination
termination without
cause; or (ii)
terminationtermination for
cause.
Typically, an employee who is dismissed without
cause does not receive advanced warning
of the
termination of employment.
[The Company] is entitled to terminate your
employment at any time without
cause by providing you with 2 weeks» notice
of termination or pay in lieu thereof for each completed or partial year
of employment with the Company.
The
employment agreement also provided that on termination without cause, the plaintiff would be entitled to the greater of notice or pay in lieu and severance pay under the Employment Standards Act, 2000 (ESA) or four weeks» pay per year of service with Olympus or Carsen, to a maximum of
employment agreement also provided that on
termination without
cause, the plaintiff would be entitled to the greater
of notice or pay in lieu and severance pay under the
Employment Standards Act, 2000 (ESA) or four weeks» pay per year of service with Olympus or Carsen, to a maximum of
Employment Standards Act, 2000 (ESA) or four weeks» pay per year
of service with Olympus or Carsen, to a maximum
of 10 months.
In the event the [sic]
termination of employment, except where such termination is for just cause, the company will provide you with notice (or salary in lieu thereof), and severance pay [if applicable] pursuant to its obligations as an employer and successor employer to NexInnovations Inc. under Employment Standards legislation, a
employment, except where such
termination is for just
cause, the company will provide you with notice (or salary in lieu thereof), and severance pay [if applicable] pursuant to its obligations as an employer and successor employer to NexInnovations Inc. under
Employment Standards legislation, a
Employment Standards legislation, as amended.
Since the initial
Employment Offer did not expressly touch upon the issue
of reasonable notice for
termination without
cause, it was an implied term
of the contract that the plaintiff was entitled to the common law standard
of reasonable notice.
With respect to entitlement on
termination of employment, the
employment contract provided as follows for a without -
cause termination: Regular employees may be terminated at any time without
cause upon being given the minimum period
of notice prescribed by applicable legislation, or by being paid salary in lieu
of such notice
of as may otherwise be required by applicable legislation.
From the employer's perspective, one
of the most beneficial terms in an
employment contract is a prescribed notice period in the event
of a «without
cause»
termination.
A full contingent
of five judges sitting at the Ontario Court
of Appeal unanimously ruled that where an
employment agreement provides for a stipulated sum upon
termination without
cause, and is silent as to the employee's obligation to mitigate, the employee will not be required to mitigate.
In refusing to grant summary judgment fixing the applicable notice period and dismissing the plaintiff employee's claims for moral and punitive damages in a
termination without
cause case, the Honourable Justice Margaret Eberhard in the case
of Brownson v. Honda
of Canada Mfg., 2013 ONSC 896, leave to appeal refused 2013 ONSC 6974, held that the answer may be that no, the employer can not terminate the employee's
employment on a without
cause basis with impunity.
Speaker, «Breaking Up is Hard to Do — Just
Cause Terminations, Off - Duty Conduct and the Benefits and Pitfalls
of Employment Contracts,» Dentons CPD Bootcamp, Toronto, November 2015.
He then challenged his
termination and the adjudicator disagreed but relied in part on the fact his express terms
of employment said he could be terminated without
cause upon payment
of notice.
Age at
termination, damages,
employment law, long - term employee, mitigation, notice period, reasonable notice, reasonable
termination notice, statutory obligations, statutory requirements, Statutory severance, supervisor,
termination,
termination notice,
termination without
cause, wrongful dismissal, years
of service
A layoff is a
termination of employment; however, the use
of the term layoff is usually understood to have a connotation
of either resulting from a shortage
of work or being temporary in nature, rather than permanent
termination or for
cause.