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ARTICLE · 28 AUGUST 2025

Developments In Employment Law: Courts Reinforce Strict Approach To Termination Provisions

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First, the Court of Appeal for Ontario has released its much anticipated decision in Dufault v. Ignace (Township), 2024 ONCA 915, which concerns the enforceability of termination provisions...

CanadaEmployment and HR
Debbie Boswell
Debbie Boswell
Yola S. Ventresca
Yola S. Ventresca
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Recent Ontario court decisions continue to reinforce a strict approach to termination provisions in employment contracts. We will discuss two of these cases, along with a third case where a termination provision was upheld.

First, the Court of Appeal for Ontario has released its much anticipated decision in Dufault v. Ignace (Township), 2024 ONCA 915, which concerns the enforceability of termination provisions in employment agreements. This decision reinforces and builds upon the principles established in Waksdale v. Swegon North America Inc., 2020 ONCA 391, with significant implications for employers.

More recently, the Superior Court has adopted the lower court holding in Dufault and set aside another termination provision in Baker v. Van Dolder's Home Team Inc., 2025 ONSC 952.

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