The Federal Court of Appeal acknowledged that for a very long time there had been two divergent and conflicting lines of case law regarding the question of whether Part III of the Canada Code permits
terminations of employment without cause.
legal problems they don't know that they have, e.g., one unserviced legal problem often leads to several more — e.g.,
termination of employment without cause or compensation, means debt, loss of property, family break - up, depression, substance abuse, and sometimes suicide, etc.; and, (3) enlist the help of the social media, news media, pressure groups, and those political parties in opposition to governments; (4) everyone should complain loudly to all of the above about law societies» failure to try to solve the unaffordable legal services problem — their failure to attack it is the cause.
Often, an employer may seek to limit its liability on termination of employment by requiring the employee to sign a contract which purports to limit the sum which is payable on
termination of employment without just cause.
Not exact matches
In order to support the continuity
of senior leadership, we have
employment agreements with Ms. Katz and Messrs. Skinner and Gold which provide, among other things, for payments to the executive following a
termination of employment by the executive for «good reason» or a
termination of the executive's
employment by us
without «cause.»
If we terminate Mr. Drexler's
employment without cause or he terminates his
employment with good reason, Mr. Drexler will be entitled to receive (i) a payment
of his earned but unpaid annual base salary through the
termination date, any accrued vacation pay and any un-reimbursed expenses, and (ii) subject to Mr. Drexler's execution
of a valid general release and waiver
of claims against us, as well as his compliance with the non-competition, non-solicitation and confidential information restrictions described below, (a) a payment equal to his annual base salary and target cash incentive award, one - half
of such payment to be paid on the first business day that is six (6) months and one (1) day following the
termination date and the remaining one - half
of such payment to be paid in six equal monthly installments commencing on the first business day
of the seventh calendar month following the
termination date, (b) a payment equal to the product
of (x) the last annual cash incentive award Mr. Drexler received prior to the
termination date and (y) a fraction, the numerator
of which is the number
of days
of service completed by Mr. Drexler in the year
of termination and the denominator
of which is 365, such amount to be paid on the first business day that is six (6) months and one (1) day following the
termination date, and (c) the immediate vesting
of such portion
of unvested restricted shares and stock options as provided and pursuant to the terms
of the relevant grant agreements under our 2003 Equity Incentive Plan.
Consistent with the severity
of the violation, discipline can include verbal or written warning, suspension with or
without pay, loss or reduction
of bonus or stock options, demotion or, for the most serious offenses or repeated misconduct,
employment termination.
Any district school board employee who is willfully absent from duty
without leave shall forfeit compensation for the time
of such absence, and his or her
employment shall be subject to
termination by the district school board.
I understand that there is no express or implied contract
of employment and that if employed I have been hired at the will
of the employer and that my
employment may be terminated at will, at any time: and with or
without cause the employer's only obligation being to pay salary or wages due and owing at the time
of termination.
2 (2) In the event we wish to terminate your
employment without just cause, we agree that we will give you notice
of the
termination of your
employment, or at our absolute discretion, we will pay you, in lieu
of such notice, a severance payment equal to the wages only that you would have received during the applicable notice period.
Even though the Federal Court
of Appeal concluded that a
without cause
termination of employment is not automatically «unjust», the Court left no doubt that not every such dismissal is just.
A contract is a contract and, as expressed by Chief Justice Winkler on behalf
of a unanimous court, «From a practical perspective, it is worth repeating that if parties to an
employment agreement specifying a fixed amount
of damages intend for mitigation to apply upon
termination without cause, they must express that intention in clear and specific language in the contract.»
When an employee's
employment is terminated
without cause, in the absence
of an enforceable
termination provision in an
employment agreement, the employee will be entitled to reasonable notice
of termination of employment at common law.
Non-Compete: The Employee shall not, either during his or her
employment or for a period
of twelve (12) months following the
termination of his or her
employment for any reason including resignation,
without the prior written consent
of the Company, carry on, or be engaged in, or be concerned with, or interested in, or employed by, any person engaged in or concerned with or interested in a business which is the same as, or substantially similar to, or in competition with, the Company's business at the time
of any such
termination within a radius
of seventy - five (75) kilometres from any Company or Affiliated Corporation office where the Employee was employed during the last twelve (12) months
of his or her
employment.
The
Employment Standards Code provides that an employee can not receive less than the prescribed amount
of severance in the event
of without - cause
termination.
Where a
termination provision in a fixed - term
employment agreement is rendered unenforceable, the employee may be entitled to wages for the balance
of the fixed term,
without any reduction for mitigated damages.
In summary, the Court
of Appeal held that where an
employment agreement contains a stipulated entitlement on
termination without cause, the amount in question is either liquidated damages or a contractual sum.
Pre-Oudin there was an accepted «rule book» about required language for employees to contract out
of their entitlement to common law notice
of termination of employment — and to restrict themselves to statutory minimums under the Employment Standards Act, 2000 — without offendin
employment — and to restrict themselves to statutory minimums under the
Employment Standards Act, 2000 — without offendin
Employment Standards Act, 2000 —
without offending the ESA.
He has turned an arbitration over his
termination during the probationary period
of his
employment in 1999 into a legal battle that apparently continues today, including allegations
of bias against members
of the BC Labour Relations Board (which were noted as being
without merit), a Statement
of Claim against the BC Attorney General (and others) which was dismissed as an abuse
of process, and the attempted swearing
of two informations against a vice chair
of the BC LRB (which the court found there was no evidence to support).
If you are an employer and are faced with serious misconduct by an employee, it is important to be mindful
of how the misconduct affects the
employment relationship when considering
termination without notice or severance pay.
Given that both wrongful dismissal and constructive dismissal are characterized by employer - imposed
termination of the
employment contract (
without cause), there is no principled reason to distinguish between them when evaluating the need to mitigate.
By agreeing to an employee's entitlements in the event
of termination without cause at the beginning
of the
employment relationship, there will be little to fight about in the event that the relationship does end in a
termination without cause.
Also, claiming after the fact that there was just cause after a
without cause
termination has already occurred is a dangerous move; employees suffer greatly when they are accused
of things at the end
of the
employment relationship, as it can prevent them from finding new
employment.
Do the performance deficiencies amount to «just cause» for dismissal enabling
termination of the superintendent's
employment without notice or compensation?
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.
... [A] ny
termination of a participant's
employment for any reason shall occur on the date Participant ceases to perform services for Micro or any Affiliate
without regard to whether Participant continues thereafter to receive any compensatory payments there from or is paid salary thereby in lieu
of notice
of termination [emphasis added]
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
If the option holder's
employment with the corporation and / or a subsidiary, as the case may be, is terminated for any reason other than set forth in paragraphs 6, 7 or 8 above, whether such
termination be voluntary or involuntary,
without his having fully exercised his option, the option shall be cancelled and he shall have no further rights to exercise his option or any part thereof and all
of his rights hereunder shall terminate as
of the effective date
of such
termination.
That means including an
employment «pre-nuptial agreement» or «pre-nup» — a contractual limitation on an employee's post-
employment entitlements in the event
of termination without cause — in your
employment agreements.
[A] ny
termination of a participant's
employment for any reason shall occur on the date Participant ceases to perform services for Micro or any Affiliate
without regard to whether Participant continues thereafter to receive any compensatory payments there from or is paid salary thereby in lieu
of notice
of termination
All too often, employees sign these
employment contracts
without understanding the significance or meaning
of the
termination clause.
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.
Termination of employment in Ontario can occur in two different ways: (i) termination without cause; or (ii) termination
Termination of employment in Ontario can occur in two different ways: (i)
termination without cause; or (ii) termination
termination without cause; or (ii)
terminationtermination for cause.
Typically, an employee who is dismissed
without cause does not receive advanced warning
of the
termination of employment.
Many employers offer
employment without this type
of harsh
termination provisions.
Rather, Justice Kane noted, the cases
of Wright v. Young and Rubicam Group
of Companies (Wunderman), 2011 ONSC 4720 and Stevens v. Sifton Properties, 2012 ONSC 5508, both
of which have previously been considered by this blog on exactly this point, see: Poorly Drafted
Employment Agreement Proves Costly and No
Termination Agreement
Without Benefits, were directly on point.
[The Company] is entitled to terminate your
employment at any time
without cause by providing you with 2 weeks» notice
of termination or pay in lieu thereof for each completed or partial year
of employment with the Company.
The
employment agreement also provided that on termination without cause, the plaintiff would be entitled to the greater of notice or pay in lieu and severance pay under the Employment Standards Act, 2000 (ESA) or four weeks» pay per year of service with Olympus or Carsen, to a maximum of
employment agreement also provided that on
termination without cause, the plaintiff would be entitled to the greater
of notice or pay in lieu and severance pay under the
Employment Standards Act, 2000 (ESA) or four weeks» pay per year of service with Olympus or Carsen, to a maximum of
Employment Standards Act, 2000 (ESA) or four weeks» pay per year
of service with Olympus or Carsen, to a maximum
of 10 months.
However, if an employer needs to rely upon one
of the grounds under Section 119
of the LPA to terminate
employment without paying any statutory severance pay and / or notice under Section 118
of the LPA or to protect an employer from a claim for unfair
termination, it is highly recommended that a written notice be issued, which specifies clear and sufficient reasons for
termination in the
termination notice.
Since the initial
Employment Offer did not expressly touch upon the issue
of reasonable notice for
termination without cause, it was an implied term
of the contract that the plaintiff was entitled to the common law standard
of reasonable notice.
With respect to entitlement on
termination of employment, the
employment contract provided as follows for a
without - cause
termination: Regular employees may be terminated at any time
without cause upon being given the minimum period
of notice prescribed by applicable legislation, or by being paid salary in lieu
of such notice
of as may otherwise be required by applicable legislation.
The Appellant claims she was an employee and that, under the circumstances,
termination of her
employment amounts to a constructive dismissal,
without notice.
From the employer's perspective, one
of the most beneficial terms in an
employment contract is a prescribed notice period in the event
of a «
without cause»
termination.
Specifically, the Plaintiff argued that his
employment with Carsen Group and Olympus Canada was continuous and Olympus Canada could not remove his common law entitlement to reasonable notice
of termination without providing him with fresh consideration.
In a decision dated March 24, 2011, the arbitrator authorized the testimony
of the three commissioner members, explaining the executive committee did not benefit from «deliberative secrecy» and it would be impossible to determine whether the
termination of the
employment relationship was consistent with the collective agreement [translation] «
without a detailed knowledge
of the deliberations».
A full contingent
of five judges sitting at the Ontario Court
of Appeal unanimously ruled that where an
employment agreement provides for a stipulated sum upon
termination without cause, and is silent as to the employee's obligation to mitigate, the employee will not be required to mitigate.
As a result, when Asphalte Desjardins terminated the employee during the notice period, it unilaterally terminated the
employment contract
without giving sufficient notice
of termination, thereby defaulting on its obligation under article 2091 and triggering ss.
In refusing to grant summary judgment fixing the applicable notice period and dismissing the plaintiff employee's claims for moral and punitive damages in a
termination without cause case, the Honourable Justice Margaret Eberhard in the case
of Brownson v. Honda
of Canada Mfg., 2013 ONSC 896, leave to appeal refused 2013 ONSC 6974, held that the answer may be that no, the employer can not terminate the employee's
employment on a
without cause basis with impunity.
The Young and Rubicam Group
of Companies (Wunderman), 2011 ONSC 4720 (CanLII), summarized by this blog in the post Poorly Drafted
Employment Agreement Proves Costly and Stevens v. Sifton Properties Ltd., 2012 ONSC 5508 (CanLII), summarized by this blog in the post No
Termination Agreement
Without Benefits.
At common law, since a contract
of personal services can not be assigned to a new employer
without the consent
of the parties, the sale
of a business, if it results in the change
of the legal identity
of the employer, constitutes a constructive
termination of the
employment.
He then challenged his
termination and the adjudicator disagreed but relied in part on the fact his express terms
of employment said he could be terminated
without cause upon payment
of notice.