For example, in Kieran v. Ingram Micro Inc., 2004 CanLII 4852 (ONCA) another panel of the Ontario Court of Appeal reviewed
the following termination provision in a stock option plan:
In North v Metaswitch Networks Corporation («North»), the Court of Appeal considered the enforceability of
the following termination provision:
Not exact matches
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).
Even after you cease using the Sites or
following termination, the
provisions of this Agreement set forth in Sections 6.2, 7, 14, 16 and 17 will remain in effect.
The
following provisions of this Agreement will survive
termination of this Agreement: Sections 1, 3, 5.4, 5.5, 5.6, 5.7, 5.8, 6, 7, 8, 9, 10, and any other
provisions that, by their nature, are intended to survive.
The
following provisions of this Agreement will survive
termination of this Agreement: Sections 1, 3, 4, 9, 11, 12 and 14.
The
following provisions of this Agreement shall survive termination of your use or access to the Site: Disclaimer of Warranties, Limitation of Liability, Submissions Through the Website, Specific Consents, Granted by Your Enrollment, Trademarks, Governing Law and Dispute Resolution, Waiver, Indemnification, General Provisions, and any other provision that by its terms survives termination of your use or access to the Site, the Content, and / or the
provisions of this Agreement shall survive
termination of your use or access to the Site: Disclaimer of Warranties, Limitation of Liability, Submissions Through the Website, Specific Consents, Granted by Your Enrollment, Trademarks, Governing Law and Dispute Resolution, Waiver, Indemnification, General
Provisions, and any other provision that by its terms survives termination of your use or access to the Site, the Content, and / or the
Provisions, and any other
provision that by its terms survives
termination of your use or access to the Site, the Content, and / or the Services.
For employers with the motivation to diminish the amount of severance paid, better yet, to a mediocre employee, I offer the
following eight tips to ensure a valid and enforceable
termination provision.
There was no mention of any of the prior case law that had been consistently
followed by lower courts in recent years that required
termination provisions to mention benefits in order to be enforceable.
The cloud policy may also set out additional institutional requirements and obligations (i.e., monitoring changes to the agreement, especially for privacy and security safeguards, ensuring destruction of data
following contract
termination, having clear
termination / transition assistance / return of data
provisions, etc.).
The company's charter and bylaws, board committee charters, and employee handbooks may also contain
provisions with regard to procedures to be
followed in the event of
termination, such as who has the authority to negotiate terms, how to effect notification, and the amount of say the CEO has in the process.
In deciding that the impugned
termination provision could not stand, Justice Kane noted the
following:
The
termination provision occupied a single page of the agreement and provided as
follows:
These
provisions will usually say something like this: «For the term of this agreement and for a period of XX month
following the
termination of this agreement, however arising, the employee agrees not to work for any competing business.»
When employers draft generous
termination provisions providing for more than statutory minimums, they must
follow through on that generosity when terminating employees.
The California Supreme Court, in Edwards v. Arthur Andersen LLP, 44 Cal.4 th 937, unanimously held that Business & Professions Code Section 16600 invalidated a
provision in Edwards» employment agreement that restricted him from servicing customers and competing with Arthur Andersen
following the
termination of his employment.
The
following example demonstrates how this
provision works: where rent is due monthly, the
termination would become effective in the month
following the
termination (so, if rent is due on the first of the month and tenant sends the
termination notice on July 10th,
termination occurs on August 31st.)
The
following provisions shall survive the
termination or expiration of these Agent Terms for any reason: Warranties and Disclaimer, Limitation of Liability, Indemnification, Term and Termination, Confidentiality, and Mis
termination or expiration of these Agent Terms for any reason: Warranties and Disclaimer, Limitation of Liability, Indemnification, Term and
Termination, Confidentiality, and Mis
Termination, Confidentiality, and Miscellaneous.