Another Termination Provision Bites The Dust: Baker v. Van Dolder's Home Team Inc.

Ontario's Superior Court has struck down yet another set of termination provisions, this time in Baker v. Van Dolder's Home Team Inc.¹ The decision continues a line of employee-friendly authority that began with the Court of Appeal's ruling in Waksdale v. Swegon North America Inc.² and has most recently gathered steam in Dufault v. Ignace.³ Below we summarize Baker, analyze the Court's reasoning and outline key takeaways for employers.

Factual background

In Baker, the plaintiff's employment was terminated without cause. The Court was tasked with determining whether the termination provisions in the plaintiff's employment agreement were enforceable and therefore effective in restricting the plaintiff's common law entitlements upon termination. The relevant provisions are as follows: