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ARTICLE · 18 NOVEMBER 2019

Another Termination Clause Falls – When Even ESA "Failsafe" Language Can Malfunction

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The Plaintiff, Wayne Groves, was the founder of UTS Consultants Inc. (UTS), serving as its President since 1992.

CanadaEmployment and HR
Adrian D. Jakibchuk
Adrian D. Jakibchuk
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In September, we covered the Ontario Court of Appeal's recent decision in Andros v. Colliers Macaulay Nicolls Inc. which struck down yet another employee termination provision and, in so doing, notably, exposed the weaknesses and limitations of what are commonly referred to as Employment Standards Act, 2000 (ESA) "failsafe" clauses.

This article examines an even more recent decision on the subject – that of the Ontario Superior Court of Justice in the case of Groves v. UTS Consultants Inc. (Groves) – which goes even further in addressing the shortcomings of such clauses. Before diving into the facts in Groves, however, it's important to clarify what exactly is meant by the term "ESA 'failsafe' clause".

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