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ARTICLE · 27 OCTOBER 2026

A Matter Of Interpretation: Termination Clause Prevails Under The Canada Labour Code

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The Ontario Superior Court of Justice has applied the Baker v. Van Dolder's Home Team framework to uphold a termination clause under the Canada Labour Code, rejecting a plaintiff's claim for common law reasonable notice. This decision demonstrates how courts will now interpret employment agreements by examining the parties' objective intentions rather than conducting technical word-by-word analysis of contractual provisions.

CanadaEmployment and HR
Kyle Lambert
Kyle Lambert
Mikayla Castagna
Mikayla Castagna
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The impact for employers of the Ontario Court of Appeal’s decision in Baker v. Van Dolder’s Home Team, 2026 ONCA 568 (“Baker”) is beginning to be felt.

In Henshell v. BFN of Ojibways, 2026 ONSC 5768 (“Henshell”), the Ontario Superior Court of Justice (“ONSC”) upheld the enforceability of a termination clause governed by the Canada Labour Code (“CLC”) and denied the plaintiff’s claims for common law reasonable notice.

The holding in Henshell provides helpful guidance to employers on how courts in Ontario will interpret termination provisions in light of the decision in Baker, including those applying to federally regulated employees.

Key Facts and Termination Clause Wording

The plaintiff was employed as the Chief Executive Officer of the defendant, Batchewana First Nation of Ojibways (“BFN”) for almost 2.5 months, until her employment was terminated without cause. 1

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