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Canada Wrongful Termination Employment Contract

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Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

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The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options....more

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Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

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Ontario, Canada Appeal Court Confirms Employment Contract Frustrated by Employee’s Refusal to Comply With COVID-19 Vaccination...

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In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Court of Appeal for Ontario (OCA) upheld the Superior Court of Justice – Ontario (SCJ)’s summary judgment decision that an employee’s refusal to comply with their employer’s...more

Littler

British Columbia, Canada Court of Appeal Affirms Enforceability of Termination Clause That Incorporated by Reference Notice and...

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In Egan v. Harbour Air Seaplanes LLP, 2024 BCCA 222, the British Columbia Court of Appeal (BCCA) upheld a lower court’s decision that a termination clause in an employment agreement was enforceable because it was neither...more

Ius Laboris

Canadian court upholds termination of unvaccinated worker

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The Ontario Court of Appeal recently held that an employee’s failure to meet COVID-19 vaccination requirements imposed by a third party amounted to frustration of the employment contract. As a result, there was no obligation...more

Littler

British Columbia, Canada Appeal Court Rejects Employer’s Frustration Defence in Circumstances Connected to COVID-19

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In Aldergrove Duty Free Shop Ltd. v. MacCallum, 2024 BCCA 28, the Court of Appeal for British Columbia (BCCA) dismissed an employer’s appeal when it agreed with the lower court that the employer could not use the frustration...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

Stikeman Elliott LLP

An Oppressive Outcome: Alberta Court Finds Directors Responsible for Severance Obligations

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The recent decision of the Alberta Court of Queen’s Bench, Wisser v CEM International Management Consultants Ltd., 2022 ABQB 414, determined that the oppression remedy under the Alberta Business Corporations Act (“ABCA”),...more

Bennett Jones LLP

Ontario Superior Court on the Enforceability of Termination Provisions in Employment Agreements

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A Question of Mixed Fact and Law - In a decision for which leave to appeal was denied by the Divisional Court, the Ontario Superior Court of Justice recently confirmed that a Rule 21 motion, seeking a determination of a...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ontario Superior Court of Justice Refuses to Apply Waksdale for Negotiated Employment Agreement

In Rahman v Cannon Design Architecture Inc., the Ontario Superior Court of Justice upheld termination provisions that appeared to be in violation of the minimum standards prescribed by the Employment Standards Act, 2000...more

Littler

Ontario, Canada Court Reduces Reasonable Notice Period Due to the Employee’s Failure to Take Reasonable Steps to Mitigate Damages

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In a wrongful dismissal claim in Ontario, it is up to the employer to prove that employees failed to mitigate their damages and that had they taken reasonable steps to do so, they would have likely obtained equivalent or...more

Littler

Ontario, Canada Court Reminds Employers it is Important to Adhere to Their Contracts’ Termination Provisions

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In Perretta v. Rand A Technology Corporation, 2021 ONSC 2111, Ontario’s Superior Court of Justice ordered an employer to pay an employee damages for reasonable notice at common law when it decided the employer repudiated its...more

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Ontario, Canada Court Finds Employee Repudiated Her Employment Contract When She Refused to Work Unless New Conditions Were Met

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In Anderson v Total Instant Lawns Ltd, 2021 ONSC 2933 (Total Instant Lawns), an employee claimed her job was terminated and sought damages for wrongful dismissal.  The employer denied the employee was dismissed and argued...more

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New Brunswick, Canada: Appellate Court Finds in Favor of Employee in Wrongful Dismissal Action

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In Abrams v. RTO Asset Management, 2020 NBCA 57 (Abrams), the New Brunswick Court of Appeal considered an employee’s appeal of a decision dismissing his action for damages in lieu of reasonable notice upon his job termination...more

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Ontario, Canada Court Confirms Employers that Revoke Accepted Employment Offers May be Liable for Damages

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In Kim v. BT Express Freight Systems (2020), 317 A.C.W.S. (3d) 255, Ontario’s Superior Court confirmed that an employer may be liable for damages if it withdraws an accepted offer of employment or terminates employment...more

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Ontario, Canada: Calculation of Reasonable Notice Period When a Contractor Becomes an Employee

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Cormier v. 1772887 Ontario Limited (St. Joseph Communications) (“St. Joseph”), 2019 ONCA 965, is an appeal from a summary judgment motion arising from the wrongful dismissal claim of a contractor who worked for St. Joseph for...more

Littler

Ontario, Canada: When an Employment Contract Is Frustrated Due to the Employee’s Permanent Disability, the Employer’s Duty to...

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Employers in Ontario will likely welcome the decision in Katz et al. v. Clarke, 2019 ONSC 2188 (Divisional Court), which addressed the scope of the duty to accommodate in the event of an employee’s permanent disability. ...more

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Decisions Involving Termination of Long-Term Employees in Canada Should Concern Employers

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Employers considering terminating long-term employees in Canada should be aware of two relatively recent decisions. In one case, Dawe, 2018 ONSC 3130, the terminated employee, age 62, was a highly paid Senior Vice President...more

Bennett Jones LLP

Courts Will Not Sever Defective Termination Provisions

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North v Metaswitch Networks Corporation, 2017 ONCA 790 [Metaswitch] is the latest in a series of employee-friendly appellate level decisions where a contractual termination provision is not enforced. The Ontario Court of...more

Littler

Termination Clause Enforced: Oudin and the Supreme Court of Canada

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In Canada, termination clauses in employment agreements are critical tools that allow an employer to avoid providing reasonable notice of termination under the common law.  Each year there are numerous court decisions on this...more

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