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ARTICLE · 24 JULY 2025

Caution to Employers Drafting Employment Contracts: Words Matter

Koskie Minsky LLP
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Recent cases over the first half of 2025 are providing a valuable lesson for employers and employees – more of a caution to employers – when interpreting employment contracts during a dispute, including the enforceability of termination clauses.

CanadaEmployment and HR
Rudy Ticzon
Rudy Ticzon

Recent cases over the first half of 2025 are providing a valuable lesson for employers and employees – more of a caution to employers – when interpreting employment contracts during a dispute, including the enforceability of termination clauses. These notable rulings send a clear message to employers that words in employment contracts matter. The wording must be precise when drafting an employment contract to ensure that a termination provision does not violate employment standards legislation such as the Employment Standards Act, 2000, S.O. 2000 (the "ESA") in Ontario.

Post Waksdale

Following Waksdale v. Swegon North America Inc., 2020 ONCA 391, 446 D.L.R. (4th) 725, a number of decisions have been made with respect to termination clauses in employment contracts – specifically, when they are found to be non-compliant with the ESA.

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