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Termination clauses in employment contracts: dead?

Last year, the Ontario Court of Appeal [ONCA] in a case called Waksdale v Swegon North America Inc. [“Waksdale“] said that a termination clause in an employment contract must be looked at in its entirety, and so invalid clauses can invalidate valid clauses, even where they are separate and governed by a severance clause.

The Supreme Court of Canada has recently denied leave to appeal this case. What does this mean for employers and employees?

  1. If your contracts have a termination clause you should operate on the working assumption that it is invalid. Take it to an employment lawyer and have it reviewed.
  2. Do this quickly. If you’re an employer, you may have a clause which you think limits your liability to a given number of weeks but instead is invalid and exposes you to a number of weeks far greater than you thought you had contracted for. If you’re an employee facing termination you may have a weapon that you didn’t have before.
This post is done by Camberwell House for informational, discussion and educational purposes only. It is NOT to provide specific legal advice and does not do so.   The older the post is, the higher the risk that the information in it is incorrect: Camberwell does not delete older posts.  There is no lawyer-client relationship between you and Camberwell House and you should seek your own lawyer and obtain legal advice tailored to your circumstances. 

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