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ARTICLE · 06 AUGUST 2020

Concerning New Decision For Ontario Construction Employers

CCP has blogged on numerous cases in the last few years where judges have struck down termination clauses in employment agreements for failing to meet the minimum obligations set out...

CanadaEmployment and HR

CCP has blogged on numerous cases in the last few years where judges have struck down termination clauses in employment agreements for failing to meet the minimum obligations set out in the Employment Standards Act, 2000 ("ESA"). The recent appeal decision of the Ontario Superior Court of Justice in Rutledge v. Canaan Construction Inc. poses a particular concern for construction industry employers.

In this case, the appeal court was tasked with interpreting the following termination clause:

"The Employee may be terminated at any time without cause upon being given the minimum periods of notice as set out in the Employment Standards Act, or by being paid salary in lieu of such notice or as may otherwise be required by applicable legislation. The Employee acknowledges that pursuant to the Employment Standards Act they are not entitled to any notice or time in lieu thereof due to the nature of their job and as such they are entitle to absolutely no notice or pay

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