Nhi Huynh analyzed a recent Ontario decision that held an employer’s ambiguous termination clause was unenforceable due to potentially breaching the ESA. While the court confirmed that language allowing termination “at any time” does not automatically invalidate a termination clause, the word “amounts” created uncertainty over whether statutory benefits were included. The case underscores that imprecise drafting can void termination clauses and leave employers liable for pay in lieu of common law notice.
See an excerpt below:
Finding the right words for a termination clause
Clarity of termination clause challenged on multiple fronts in recent decision – did they all survive Ontario court’s scrutiny?
Another Ontario termination clause has been ruled unenforceable because it breaches employment standards legislation – not from language that allowed the employer to fire the worker with cause “at any time,” but because it left the door open for other breaches of employment standards legislation.