Further, the Court held that an employee employed pursuant to
a fixed term employment contract is not required to mitigate his damages following early termination unless the contract expressly mandates mitigation.
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.
Similarly, if an employer terminates
a fixed term employment contract prior to the end of the term the employer will be obligated to pay the employee to the end of the term, and that obligation will not be subject to mitigation unless the contract explicitly states that the employee is required to mitigate his or her damages.5
In the recent decision in Howard v. Benson Group Inc., 2016 ONCA 256, the Ontario Court of Appeal provides straightforward but important lessons for employers who make use of
fixed term employment contracts: Continue Reading Fixed Term Employment Contracts — Important Lessons from the Ontario Court of Appeal
A fixed term employment contract will also rebut the presumption of reasonable notice of dismissal.
The major issue in dispute was relatively narrow — whether the plaintiff had
a fixed term employment contract.
The plaintiff had a real argument that he had
a fixed term employment contract.