Courts throughout the country, including the appeal courts in Ontario and British Columbia, have
upheld termination clauses that did not expressly reference benefits continuation.
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.
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.
Not exact matches
That said, there have been a number of decisions in the past couple of years which have
upheld arguably unlawful
termination clauses in favour of employers, thus creating uncertainty for employees and a possible incentive for employers to not even meet minimum ESA requirements for severance.
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.
Although the Court
upheld the enforceability of this
termination clause in this instance, in our view this
clause is not one that employers should use as a model.
The Ontario Court of Appeal has
upheld a decision regarding a
termination clause in an employment agreement involving a man who accepted two - weeks notice from his employer then claimed damages saying he was wrongfully dismissed.