ARTICLE · 21 OCTOBER 2016

Be Careful Of Fixed Term Employment Agreements

McLennan Ross LLP

On October 13, 2016, the Supreme Court of Canada refused to consider an appeal of an Ontario Court of Appeal decision.

CanadaEmployment and HR

On October 13, 2016, the Supreme Court of Canada refused to consider an appeal of an Ontario Court of Appeal decision. This decision is a useful reminder for employers about the care that needs to be taken with fixed term employment agreements.

An employee signed a five year fixed term agreement provided by the employer. The employee was dismissed, without cause, 23 months later. The employee then sued, claiming an entitlement to the remainder of the five year term.

The employer argued a provision in the agreement, which provided:

Employment may be terminated at any time by the Employer and any amounts paid to the Employee shall be in accordance with the Employment Standards Act of Ontario.

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Be Careful Of Fixed Term Employment Agreements

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