Duarte v Black & Decker Corporation [2008] All ER (Comm) 401 Leading case on the role of English public policy as the law of the forum in cases involving restrictive covenants in
employment contracts containing a choice of foreign law; trial of confidential information dishonest copying claim.
It can be a costly mistake to have employees sign
employment contracts containing termination clauses that have not been properly drafted.
Employees routinely sign
employment contracts containing restrictive covenants, which restrict an employee from engaging in certain activities during their employment, and / or following their departure from a company.
The number of employers who provide their employees with
employment contracts containing void termination clauses is amazing.
Employment contracts containing termination clauses should be reviewed by an experienced employment lawyer.
Employers can mitigate their risk by limiting what they say (as Urban Systems appeared to do in this case) and by drafting
employment contracts containing clear «entire agreement» and termination clauses.
Do you live or work in Mississauga and has your employer asked you to sign
an employment contract containing a non-solicitation agreement or clause?
The employment contract contained an «early out» clause, which stated that «employment may be terminated at any time by the Employer and any amounts paid to the Employee shall be in accordance with the Employment Standards Act of Ontario.»
If
the employment contract contains a clause that sets out the amount of notice an employee gets upon being fired and the contract is valid, then the employee is entitled only to the reasonable notice set out therein.
Employees tend to seek counsel when they are beginning or ending an employment relationship, whether it be a key executive seeking assistance with
an employment contract containing restrictive covenants, or an exiting employee working through a severance offering.
As a result, employers whose
employment contracts contain termination clauses should consult with an employment lawyer because their cost of terminating employees is now potentially significantly higher than before.
The determination of whether an employee who has been instructed by her employer to transfer to another geographic location is a fundamental breach of the employee's employment contract depends on a number of factors including the specifics of any proposed geographic transfer and whether the employee's
employment contract contains an express or implied term of employment that allows the employee's to be transferred.
However, that same employee may only be entitled to 2 weeks» notice of dismissal if they had signed
an employment contract containing a termination clause.
Even someone who has only been employed for a few years can suffer a significant loss if
their employment contract contains a termination clause.
The Ontario Court of Appeal held in Howard v Benson Group Inc. 4 that an employee who has been dismissed prior to the end of the fixed term will be entitled to the wages and benefits he or she would have received to the end of the fixed term unless
the employment contract contains an enforceable termination clause that specifies a pre-determined notice period in the event of early termination.
The Supreme Court of Canada held in Machtinger v. HOJ Industries Ltd. 2 that if
an employment contract contains a termination clause that provides an employee with an entitlement upon termination other than reasonable notice, that entitlement must be at least equal to the employee's minimum notice and severance entitlements as set out in the ESA.
In Ontario approximately 30 % of
employment contracts contain termination clauses that will not be enforced by a court because the clauses have not been properly drafted.
The Supreme Court of Canada held in Machtinger v. HOJ Industries Ltd5 that if
an employment contract contains a termination clause that provides an employee with an entitlement upon termination other than reasonable notice, that entitlement must be at least equal to the employee's entitlement pursuant to the ESA.
A major problem faced by employers whose current
employment contracts contain termination clauses silent on the subject of mitigation is that they can not simply have their current employees sign new employment contracts containing a revised termination clause.
Each of the five
employment contracts contained a contractual clause that intended to replace the Employee's right to common law notice upon termination, with the statutory minimums, under Ontario's employment standards legislation, the Employment Standards Act, 2000, S.O. 2000, c. 41 (the «ESA»).
However, as is often the case, the headhunter later forwarded
an employment contract containing some language that had not been discussed.
Not exact matches
Each
contract or
employment agreement, or renewal or renegotiation of an existing
contract or
employment agreement,
containing a provision for severance pay with an officer, agent, employee, or contractor must include the provisions required in s. 215.425.
(e) The board shall establish the information needed in an application for the approval of a charter school; provided that the application shall include, but not be limited to, a description of: (i) the mission, purpose, innovation and specialized focus of the proposed charter school; (ii) the innovative methods to be used in the charter school and how they differ from the district or districts from which the charter school is expected to enroll students; (iii) the organization of the school by ages of students or grades to be taught, an estimate of the total enrollment of the school and the district or districts from which the school will enroll students; (iv) the method for admission to the charter school; (v) the educational program, instructional methodology and services to be offered to students, including research on how the proposed program may improve the academic performance of the subgroups listed in the recruitment and retention plan; (vi) the school's capacity to address the particular needs of limited English - proficient students, if applicable, to learn English and learn content matter, including the
employment of staff that meets the criteria established by the department; (vii) how the school shall involve parents as partners in the education of their children; (viii) the school governance and bylaws; (ix) a proposed arrangement or
contract with an organization that shall manage or operate the school, including any proposed or agreed upon payments to such organization; (x) the financial plan for the operation of the school; (xi) the provision of school facilities and pupil transportation; (xii) the number and qualifications of teachers and administrators to be employed; (xiii) procedures for evaluation and professional development for teachers and administrators; (xiv) a statement of equal educational opportunity which shall state that charter schools shall be open to all students, on a space available basis, and shall not discriminate on the basis of race, color, national origin, creed, sex, gender identity, ethnicity, sexual orientation, mental or physical disability, age, ancestry, athletic performance, special need, proficiency in the English language or academic achievement; (xv) a student recruitment and retention plan, including deliberate, specific strategies the school will use to ensure the provision of equal educational opportunity as stated in clause (xiv) and to attract, enroll and retain a student population that, when compared to students in similar grades in schools from which the charter school is expected to enroll students,
contains a comparable academic and demographic profile; and (xvi) plans for disseminating successes and innovations of the charter school to other non-charter public schools.
(a) Any
contract in excess of $ 2,500 entered into by any Federal department or agency for the procurement of personal property and nonpersonal services (including construction) for the United States shall
contain a provision requiring that, in employing persons to carry out such
contract the party
contracting with the United States shall take affirmative action to employ and advance in
employment qualified handicapped individuals as defined in section 7 (6).
Syncrude had paid out such benefits, and sought to exercise its right,
contained in the
employment contract, to subrogate for the amount paid out.
Where, on inquiry, the Board determines that an employee has been discharged or otherwise disciplined by an employer for cause and the
contract of
employment or the collective agreement, as the case may be, does not
contain a specific penalty for the infraction, the Board may substitute such other penalty for the discharge or discipline as seems just and reasonable in all the circumstances.
Represented the NYNEX Corporation and New York Telephone Company before the New York Court of Appeals in a case establishing that a breach of
contract action can not be brought based on the breach of an
employment handbook when that handbook
contains a disclaimer.
Among other precedential matters, Mr. Miklave represented the NYNEX Corporation and New York Telephone Company before the New York Court of Appeals in a case establishing that a breach of
contract action can not be brought based on the breach of an
employment handbook when that handbook
contains a disclaimer (Lobosco v. NYNEX).
To keep costs
contained, put a clause in the
employment contract that stair - steps payments to the expert depending upon the work performed.
The Court accepted that the parties did not intend to
contract out of the minimum standards of the ESA and held that the plaintiff's challenges to the
contract «represent [ed] either strained interpretations or [were] easily and reasonably cured using the curative language
contained in the
employment agreement itself».
Thus, any violations of the FLSA by an employer could constitute breach of the
employment contract which, as discussed supra, could prevent the enforcement of any restrictive covenants
contained in the
employment contract.
In order to qualify for this, the Temporary Work Agency (TWA) providing agency workers (in this case, Mainstream, a major supplier of agency truck drivers based in Kent) must enter into an
employment contract with their agency workers,
containing particular written terms, covering details including minimum hours of work and remuneration.
Employment contracts often
contain a provision that restricts an employee from competing with the employer after the relationship ends.
A fairly significant percentage of employees in Toronto and the rest of Ontario have
employment contracts that
contain termination clauses that are silent with respect to mitigation.
Of Canada3 In Belton, the Court of Appeal considered whether the employees» refusal to acknowledge the employer's right to make changes in the compensation plan
contained in the
contract of
employment justified the employer's dismissal of the employees who refused to sign the «new» agreement
containing the revised compensation plan.
As an employer, you are likely to be familiar with clauses setting out the «normal retiring age» for employees and many of the
contracts of
employment of your own employees no doubt
contain such clauses.
The second
employment agreement did not
contain an arbitration clause, although it did
contain a clause purporting that the
contract was the «entire agreement» between the parties.
Employment contracts may contain provisions relating to long - term disability benefits, allowing suffering employees to maintain a certain quality of life while taking the time required to recover with the hope of keeping their employment relationsh
Employment contracts may
contain provisions relating to long - term disability benefits, allowing suffering employees to maintain a certain quality of life while taking the time required to recover with the hope of keeping their
employment relationsh
employment relationship intact.
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
The clauses in
employment contracts that are most likely to be the subject of a legal dispute between an employee and employer are: (i) the termination clause or, if the
contract does not
contain a termination clause the employee's entitlement to reasonable notice (ii) clauses that set out an employee's entitlement to variable compensation such a bonus, commission and / or stock options; and (iii) restrictive covenants (e.g. non-competition and / or non-solicitation clauses).
The Court found that the plaintiff's
employment contract did not
contain an express or implied contractual term that allowed the company to transfer the employee's
employment to San Francisco.
The employer has the employee sign an
employment contract that
contains a termination clause that will not be enforced by a court.
Employment contracts may also
contain provisions regarding payment of salary, commissions, bonuses, and severance payments.
However, it also offers a caution to employers against making oral promises at the time of hiring that are not
contained in the
employment contract.
However, the right to reasonable notice can be legally removed if the employee signs an
employment contract that
contains a termination clause that provides the employee with a lesser amount in the event that the employee is ever dismissed.
The
contract of
employment did not
contain any clause pertaining to the possibility of a temporary layoff.
It would no doubt have been linguistically preferable had the termination provision in MacDonald's
contract contained words after the term of notice such as «in accordance with the relevant provisions of the
Employment Standards Act.»
The difference in the notice and severance payments available to a dismissed employee who has signed an
employment contract that
contains a termination clause limiting his or her entitlements to the ESA and what the employee would receive if he or she is entitled to reasonable notice can be substantial.
This is established by having the future employee sign an
employment contract that
contains a termination clause that either sets out a different notice period or provides a formula for calculating the employee's notice period at the time of dismissal.
A courts will only limit an employee's entitlement to continuation of these benefits if the employee's
employment contract (which can include an employee's policies)
contains clear and unambiguous language to the contrary.