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ARTICLE · 04 AUGUST 2025

A Marked Shift In Termination Clause Enforceability? Use Of The Words "At Any Time" Does Not Automatically Render Provision Unenforceable

Fogler, Rubinoff LLP
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In Li v. Wayfair Canada Inc. 2025 ONSC 2959 ("Li"), the Ontario Superior Court of Justice upheld a minimum standards termination clause which provided the employer...

CanadaEmployment and HR
Paul Schwartzman
Paul Schwartzman
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In Li v. Wayfair Canada Inc. 2025 ONSC 2959 ("Li"), the Ontario Superior Court of Justice upheld a minimum standards termination clause which provided the employer with the ability to terminate the employee's employment, "at any time". While this outcome is welcomed news by employers, the Court's reasoning raises some unresolved questions, particularly when compared with recent conflicting decisions.

Facts

The plaintiff, Li, was employed by Wayfair Canada Inc. as a Senior Product Manager. His employment contract contained a termination clause that allowed Wayfair to terminate him "at any time and for any reason," subject to providing Li with his ESA minimum entitlements. Li was dismissed without cause after approximately nine (9) months of service and brought a claim challenging the enforceability of the termination clause, relying in part on recent decisions such as Dufault v. Township of Ignace, 2024 ONSC 1029, affirmed 2024 ONCA 915 ("Dufault") and Baker v.

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