In his reasons for decision, the Honourable Justice Paul Kane of the Ontario Superior Court of Justice sitting in Ottawa, challenges recent decisions from the Ontario courts on the issues of
both contractual termination provisions and statutory severance.
Employers should therefore consult their human resources law advisors to determine if
their contractual termination provisions are in need of revision.
Not exact matches
This arbitration
provision shall survive
termination of these Terms of Use and any other
contractual relationship between you and Company.
So for example, there are numerous questions about what Brexit might do to existing
contractual relationships: for instance, could agreements relating to the
provision of goods or services into or out of the EU be vulnerable to
termination on the basis of frustration, or pursuant to force majeure or material adverse change (MAC) clauses?
The decision brings needed clarity to the interplay between
contractual termination of employment
provisions and the minimum standards established in the Ontario Employment Standards Act, 2000 (the «ESA»).
The Court of Appeal acknowledged its obligation to interpret a
termination provision in the manner most favourable to the employee, where the
contractual language is unclear or can be interpreted in more than one way.
Therefore, the entire
termination provision was unenforceable and Mr. Roberts was not entitled to receive the
contractual severance payment.
[5] The Court of Appeal held that a
contractual provision that excluded a director's breach of fiduciary duties as a ground for
termination would «eviscerate the prohibition found in s. 134 (3).»
A
contractual provision on
termination can be good for both parties entering into an employment contract because it provides certainty in the event of
termination, and avoids costly litigation and recourse to lawyers and courts.
It is difficult to discern from media reports the precise nature of the
contractual entitlement, but it sounds to me as if the
termination provision here simply calls for two years of pay with no requirement to mitigate, likely either by lump sum payment, or in the form of salary continuation.