A Risk "At Any Time": Ontario Court Voids Another Termination Clause

In Baker v. Van Dolder's Home Tech Inc. ¹, the employee sued his former employer for wrongful dismissal after he was terminated without cause.

The issue before the Court was whether a termination clause in the employee's employment agreement was enforceable and therefore effectively limited the employee's entitlements on termination.

The employee's termination clause provided that the employer could terminate his employment without cause "at any time" upon providing him with his minimum entitlements under the Ontario Employment Standards Act, 2000 (the "ESA"or the "Act").

The employee argued that the termination provision was unenforceable because it allowed for termination "at any time", which the employee argued was a misstatement of the ESA. The employee cited the decision in Dufault v. The Corporation of the Township of Ignace to support his argument.²