Continue Reading Alberta and Ontario Courts Diverge
on Termination Clauses
Continue Reading Ontario Court of Appeal Weighs in (Again)
on Termination Clauses
This is covered in detail, along with further information dealing with rebutting the presumption of reasonable notice, in the sub-chapter
on termination clauses.
However, as explained in our earlier blog posts, here and here, the Court of Appeal's recent decisions
on termination clauses seem to be turning some of these principles on their heads.
Ten years later, Olympus Canada dismissed Mr. Krishnamoorthy without cause and relied
on the termination clause in Mr. Krishnamoorthy's employment agreement.
Not exact matches
Sporting have signalled their intent to cash in
on Carvalho with a new contract increasing his buyout
clause to # 35m, which they announced
on Sporting's official website with this report: «Under the terms and for the purposes of compliance with the reporting requirements stemming from Article 248, paragraph 1 al. a) of the Securities Code, the Board of Directors of Sporting Clube de Portugal — Futebol, SAD announces that the athlete William Carvalho Silva extended his contract with Sporting Clube de Portugal — Futebol SAD until the season 2019/2020, settling the
termination clause in $ 45,000,000.00 (forty - five million euros).»
A statement
on Sporting's website read: «Under the terms and for the purposes of compliance with the reporting requirements stemming from Article 248, paragraph 1 al. a) of the Securities Code, the Board of Directors of Sporting Clube de Portugal - Futebol, SAD announces that the athlete William Carvalho Silva extended his contract with Sporting Clube de Portugal - Futebol SAD until the season 2019/2020, settling the
termination clause in $ 45,000,000.00 (forty - five million euros).»
8.4
On termination of this License by the Licensee for cause, as specified in
clause 8.2.2 above, the Publisher shall forthwith refund the proportion of the Fee that represents the paid but un-expired part of the Subscription Period.
Is there a
termination clause or point when the right revert based
on either unit sales or minimum revenue?
«Unlike a rental arrangement with a one or two year contract and known
termination clauses, defaulting
on a mortgage can do major damage to your credit report,» he tells Business Insider.
22.5 In addition, without limiting
clause 22.1 it is a condition of Membership that, unless Qantas is otherwise notified by a Relevant Member, the Relevant Member consents to Qantas disclosing the Relevant Member's personal information and Emirates operated flight details to Emirates in the United Arab Emirates and the United Kingdom
on or after the Emirates
Termination Date for the purpose of Emirates offering the Relevant Member membership in the Skywards frequent flyer program (or the equivalent program as at the Emirates
Termination Date).
I do nor know if the feedback payback continues if the thing stops altogether then resumes automatically
on the start of power after repair, and I also do not know the form of contract
termination clauses at end of agreed life.
What are the potential legal ramifications of ceasing work
on a web development contract which had no voluntary early
termination clause, but which I believe the Client to be in breach of?
While there appeared to be a consensus for years that strict language was required to displace the common law without infringing
on the ESA, Rose says a 2016 Ontario Court of Appeal decision dismissed an appeal from a motion judge's ruling upholding a
termination clause — providing «the minimum required by the ESA» — that was linguistically sparse compared to earlier rulings.
Employers operating in Ontario who «draw the circle» around employee rights and entitlements
on termination should carefully review and ensure that their contractual
termination clause complies with all aspects of statutory minimum standards, and in particular: (a) notice or pay in lieu, (b) benefits continuation during the notice period, (c) severance pay, if applicable, and (d) continued vacation accrual during the
termination notice period.
In Howard the Ontario Court of Appeal awarded an employee whose employment was terminated 23 months into a five - year term damages reflecting the balance of the term
on the basis that the contractual
clause providing for early
termination was unenforceable due to ambiguity.
At the same time, Rose says there is plenty that we don't know, such as whether or not it is safer for employers to use fewer words in a
termination clause and avoid all - inclusive language, and whether, for public policy reasons, future court decisions will put an onus
on employers to make clear to employees the differences between ESA entitlements and the common law before they sign ESA - only contracts.
Parties contracting under Chinese law can include a negotiated
termination clause, and / or be permitted to terminate
on breach of a «main obligation» of the contract which is not rectified within a reasonable time.
Nigel has been advising
on the meaning and effect of an early
termination clause in a series of charterparties between shipowners and charterers who subcharter to a South American national oil producer.
The question is whether or not Ms. Bergeron is entitled to be paid in accordance with the
termination clause or based
on common law reasonable notice.
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?
Since there is no opt - out
on transfer
clause, you have to finish the term of the contract (or pay whatever fee is assessed if there is an early
termination clause).
In some decisions — such as Roden v Toronto Humane Society (2005), Oudin v Centre Francophone de Toronto (2016) and Cook v Hatch (2017)-- the courts have found that silence might mean an implied intent to comply with the Employment Standards Act (the «ESA») and / or that ambiguities in
termination clauses can be resolved by focusing
on the overall intention of the parties.
The court found the
termination clause to be unenforceable as it violated the minimum requirements of the ESA by permitting payments to be based solely
on base salary, thus expressly excluding the employee's commission (which is required as part of wages under the ESA).
Instead, the Court relied
on the language of the
termination clause itself and found that the wording resulted in a contravention of the ESA.
On appeal, the Court of Appeal ruled that the
termination clause was unenforceable and thus, the employee was entitled to reasonable notice at common law.
While the ruling in Wood is not a clear «win» for employers, it is helpful in that Ontario employers now have much needed guidance
on the language necessary to draft enforceable
termination clauses.
Ms. Wood argued that the enforceability of the
clause was to stand or fall
on its own wording, and that FDI could not remedy an otherwise illegal and unenforceable
termination clause by its conduct.
Citing Machtinger v. HOJ Industries Ltd., [1992] 1 SCR 986, 1992 CanLII 102 (SCC), the Court of Appeal endorsed the view that the enforceability of a
termination clause «stands or falls»
on its wording, rather than
on what an employer provides after
termination.
On appeal, the Court of Appeal overturned the Superior Court's decision and held that the
termination clause contravened the ESA and was unenforceable.
Courts have focused
on the various technical requirements in the language of
termination clauses and, in the absence of the technical requirements in the
termination clauses, courts have held such
clauses to be unenforceable.
Clauses in employment agreements that preclude an employee from competing with the employer following
termination of employment will be struck down as an unlawful restraint
on trade and contrary to public policy, unless they can be justified
on the basis of reasonableness.
Joint Ventures: examples of some of the cases in which we have recently acted include: a dispute between joint venturers about undistributed profits in a JV vehicle upon the operation of a Change of Control
clause; a claim
on a business sale guarantee arising from the
termination of a joint venture; and Tethyan Copper Company Pty v Government of Balochistan (ICC Case No. 18347 / VRO / AGF), a dispute under a joint venture contract in relation to the refusal of a mining licence over copper and gold deposits at Reko Diq, Pakistan.
(RICS panel members» security of tenure within the meaning of ECHR Article 6; whether RICS should make disclosure of panel members» terms of appointment given attempt by RICS to impose a one month
termination clause on the Chair of Complaints and Appeals)
The enforceability of the
clause stands or falls
on its own wording», not what the employer did after
termination.
In addition, the Court of Appeal held that the
clause said nothing about benefit contributions, and held that the fact that the employer made contributions following
termination should have no bearing
on whether the
termination clause itself contravenes the ESA.
Given the many developments in this area over the last year, including the various pronouncements related to this issue by the Ontario Court of Appeal, employers that have not already done so would be well advised to turn their minds to ensuring that their
termination clauses in employment agreements for existing and new employees are enforceable and will achieve the desired result
on termination of employment.
The Court held that the
termination clause did not provide less than the minimum entitlement under the ESA
on the basis that it did not expressly exclude the ESA entitlement to severance pay, and that it therefore was not void because of the failure to expressly address severance pay.
She argued that the
termination clause in the offer letter was invalid and unenforceable
on the basis that it permitted the employer to terminate her employment without continuing her benefits for the duration of the notice period.
Unlike the
termination clause considered by the Court of Appeal in its 2017 decision, Wood v Fred Deeley Imports (which you can read about in more detail
on our blog), the
clause in this case did not exclude the employer's obligation to provide severance pay; it simply said nothing about the obligation.
This decision extended the ruling in a 2012 decision, Bowes v Goss Power Corp. which had held that where an indefinite hire contract contained a
termination notice
clause allowing for
termination on «6 months» notice or pay in lieu» and the employer terminated without working notice, there was no duty to mitigate damages or deduction for mitigation earnings.
The
termination clause went
on to state that the contract could otherwise be terminated early with two weeks» written notice.
However, the Court of Appeal disagreed,
on the basis that if a
termination clause could breach the ESA at some point in the employment relationship, the
clause is void and unenforceable even if the employee has in fact received all of her entitlements given when
termination of her employment happened.
At DAC Beachcroft LLP, practice head Lesley Hughes has expertise in landlord and tenant disputes, particularly those with an insolvency aspect, complex service charge and dilapidations claims, break rights, issues arising from development agreements and rent reimbursement claims under NHS contracts, Recent work includes handling declaratory proceedings regarding a # 50m break
clause; assisting with the
termination of conditional development agreements; and advising
on town centre regeneration matters for a local authority, which included assisting with procurement, landlord and tenant, listed building and right to light issues.
The Pendulum Swings Back: The Court of Appeal Rules
Termination Clause Valid Despite Silence
on Benefits Continuation
Continue Reading The Pendulum Swings Back: The Court of Appeal Rules
Termination Clause Valid Despite Silence
on Benefits Continuation
Ellen provides advice to employers and employees in plain English
on all aspects of employment law including: drafting and reviewing employment contracts, workplace policies,
termination provisions, non-competition
clauses and restrictive covenants, wrongful and constructive dismissal litigation, employment standards, workplace investigations, occupational health and safety issues as well as human rights in the workplace.
A recent decision of the Ontario Court of Appeal (ONCA) has provided clarity in the debate over the validity of
termination clauses in employment contracts that are silent
on continuation of benefits through the statutory notice period.In Oudin v. Centre Francophone de Toronto, 2016 ONCA 514, the ONCA enforced a
termination clause that set out the notice period in case of dismissal but did not mention benefits continuation.
The
termination clauses in the employment contracts at issue in these cases appeared,
on their face, to be valid and enforceable in light of the prevailing legal principles and existing case law.
The judge awarded DeGagne 6 months» notice of dismissal
on the basis that the
termination clause in his employment contract provided him with 6 months» notice of dismissal during his first year of employment.