British Columbia And Ontario: Two Diverging Approaches To Interpreting Termination Provisions

Overview

Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court challenges to these provisions, various provinces appear to be taking different judicial approaches.

Over the last year, two decisions, Dufault v. The Corporation of the Town of Ignace (Dufault)and Egan v. Harbour Air Seaplanes LLP (Egan),have highlighted Canadian courts' divergent approaches to interpreting termination provisions in employment agreements.Dufaultexemplifies Ontario courts' employee-friendly, detail-oriented approach to interpreting termination provisions. Conversely, Egan reaffirms British Columbia courts' more employer-friendly, practical approach to interpreting termination provisions.