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ARTICLE · 30 JUNE 2025

Are Termination Clauses In Employment Contracts Enforceable?

Wallace Smith LLP
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If you're concerned about the enforceability of the termination clause in your employment contract, it's important to understand that the answer isn't always straightforward.

CanadaEmployment and HR
Greg Robson
Greg Robson

If you're concerned about the enforceability of the termination clause in your employment contract, it's important to understand that the answer isn't always straightforward.

Termination Clauses Enforceability and Workplace Termination Laws: It Depends

Short Answer: The enforceability of termination clauses varies. In many cases termination clauses are NOT enforceable.

The Ontario Employment Standards Act (ESA)

The Ontario Employment Standards Act (the "ESA") sets out the minimum standards employees are entitled to when they are terminated/dismissed. Subject to certain exceptions, most employees are entitled to more than the ESA minimums. Many employment contracts contain termination clauses attempting to limit employees to the minimum notice period or pay in lieu of notice set out under the ESA. Employees are usually entitled to more.

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