However, employers should nevertheless continue to exercise caution when drafting
termination clauses by specifically referring to benefits continuation during the statutory notice period.
In that case, «the Ontario Court of Appeal refused to salvage an ESA - only
termination clause by applying a severability provision to the last paragraph of the termination clause that violated the ESA by denying an employee his commissions.»
In North, the Ontario Court of Appeal refused to salvage an ESA - only
termination clause by applying a severability provision to the last paragraph of the termination clause that violated the ESA by denying an employee his commissions.
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.
Not exact matches
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.
How to keep others from taking more than their fair share
by understanding the nuances between licenses vs. assignments, exclusive vs. non-exclusives and
termination clauses.
The contract should include a cancellation
clause detailing what penalties may be applied for early loan
termination and the process
by which you or the lender may cancel the loan.
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).
Members agree that any dispute, controversy or claim arising out of or relating to these Terms and Conditions, or the breach,
termination or invalidity thereof, shall be settled
by arbitration in accordance with the UNCITRAL Arbitration Rules in force and as may be amended
by the rest of this
clause.
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.
This decision runs directly contrary to Nemeth v. Hatch Ltd., 2018 ONCA 7 («Nemeth «-RRB-, wherein the Ontario Court of Appeal ruled that
termination clauses do not need to contain specific language to oust the common law, as long as the «intention to displace an employee's common law notice rights can be readily gleaned from the language agreed to
by the parties.»
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.
In this instance, an important question is whether the unilateral change
by the employer to the employment contract voids the
termination clause.
The break
clause permitted
termination in January 2012
by giving six months» prior written notice.
This week, in Nemeth v. Hatch Ltd., 2018 ONCA 7, the Ontario Court of Appeal («Court») clarified that
termination clauses do not need to contain specific language to oust the common law, as long as the «intention to displace an employee's common law notice rights can be readily gleaned from the language agreed to
by the parties.»
Termination clauses: Similarly, contractual language surrounding termination is often challenged by
Termination clauses: Similarly, contractual language surrounding
termination is often challenged by
termination is often challenged
by employees.
Then the Ontario Court of Appeal in Oudin v. Centre Francophone de Toronto dismissed an appeal from a motion judge's ruling upholding a
termination clause (providing «the minimum required
by the ESA») that was linguistically sparse and relatively imprecise when compared to earlier rulings.
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).
Accordingly, Mr. North's entitlement upon
termination was not limited
by the
termination clause in his employment agreement.
Regarding the missing
termination clauses in both treaties, the rather general reference to the clausula rebus sic stantibus of Art. 62 VCLT
by the court is rather disappointing, in particular knowing how difficult it is to argue a change of circumstances under public international law.
in the case of a
termination under
clause 56 (1)(c), the total amount of wages earned
by the assignment employee for work performed for clients of the agency during the 12 - week period immediately preceding the deemed
termination date, divided
by 12.
In that case the
termination clause at issue did not reference benefits or severance pay and was upheld with very brief reasons
by the Court of Appeal.
Such a deal — called a «
termination clause» — is usually found in an «employment agreement» or in a similar but less formal document signed
by both sides.
* Conduct of the Business
Clause: The alleged (almost unbelievable) violation
by Harman of its capital expenditures covenant and subsequent
termination of its agreement to be acquired
by KKR and GS Capital Partners underlined the need to keep clients alert and informed of these
clauses, as well as for clients to have appropriate systems in place to prevent breaches.
(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)
Employment contracts containing
termination clauses should be reviewed
by an experienced employment lawyer.
Approximately 30 % of
termination clauses in Ontario have not been properly drafted and, therefore, will not be enforced
by a court allowing the dismissed employee to claim a much larger severance package.
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
It is common for employers to place
termination clauses and non-competition and non-solicitation
clauses in employment contracts that will not be enforced
by a court.
Termination clauses in employment contracts are normally inserted
by employers into employment contracts to minimize the cost of dismissing employees.
Experienced employment lawyers are very good at spotting
termination clauses that will not be enforced
by a court.
The employer has the employee sign an employment contract that contains a
termination clause that will not be enforced
by a court.
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.
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.
Is the
termination clause void because it contracts out of the ESA
by not mentioning severance pay?
However, employers need to carefully consider whether and how fixed - term contracts may be renewed pursuant to the contract so that
termination clauses always provide the minimum
termination entitlements under the ESA, regardless of when the contract may be terminated during the life of the contract, including during any renewal of the term as permitted
by the contract.
Many in the employer community were surprised
by three recent cases (here, here and here) in which the Ontario courts struck down
termination clauses in employment contracts for the failure to specifically reference the continuation of benefits through the statutory notice period under the Employment Standards Act, 2000 (the «ESA «-RRB-.
have the employment contract reviewed
by an employment lawyer to determine if the
termination clause is legally enforceable.
If the
termination clause provides the employee with less than that required
by the ESA, a court will strike the
clause from the contract and award the dismissed employee reasonable notice of dismissal.
At issue before the ONCA in Oudin was a
termination clause that allowed the employer to dismiss the employee without cause
by giving him 15 days» notice or the minimum notice required
by the Employment Standards Act (ESA).
Significantly, approximately 30 % of
termination clauses in Ontario employment contracts have not been properly drafted and will not be enforced
by a court because they breach the minimum standards of the («ESA»).
Typically, if an employer places a
termination clause in an employment contract, the
termination clause will only provide the employee with the absolute minimum notice required
by law which is set out in the Ontario Employment Standards Act or, for federally regulated employees, the Canada Labour Code.
Therefore, a
termination clause must provide an amount equal to or greater than the minimum notice and severance required
by the ESA.
Another option is to have the employment contract reviewed
by an experienced employment lawyer to determine if the
termination clause is enforceable.
Justice Glithero found that the
termination clause breached the ESA writing «[b] oth Machtinger at para. 26 and s. 5 (1) of the ESA make any provisions that attempt to contract out of minimum employment standards,
by providing for lesser benefits than those legislated as minimums, «null and void»».
The purpose of a
termination clause in an employment contract is to rebut the legal presumption that the employee will be provided with reasonable notice of dismissal and replace that entitlement with another notice period that has been agreed to
by the parties.1 The
termination clause will typically provide the employee with either a fixed notice period or a formula for calculating the notice period based on the employee's years of service.
A
Termination Clause that Provides a Notice Period that is Less than the Minimum Provided
By the Employment Standards Act is Void
A
termination clause will be enforced
by a court as long as it provides at least the minimum notice and severance provisions required
by the Ontario Employment Standards Act 2000.
Therefore, if an employer is intent on inserting a
termination clause into an employee's employment contract it must do so at a time when it will be supported
by consideration such as a promotion, bonus or significant pay raise.