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ARTICLE · 20 APRIL 2023

Does Your Termination Clause Need To Comply With Statutory Group Notice Provisions?

Stikeman Elliott LLP
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In its recent decision, Forbes v. Glenmore Printing Ltd., 2023 BCSC 25 ("Glenmore"), the Supreme Court of British Columbia rejected an argument that a contractual termination provision...

CanadaEmployment and HR
Cheryl Rea
Cheryl Rea
Jennifer McBean
Jennifer McBean
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In its recent decision, Forbes v. Glenmore Printing Ltd.,2023 BCSC 25 ("Glenmore"), the Supreme Court of British Columbia rejected an argument that a contractual termination provision was void due to its potential to breach the requirements of the Employment Standards Act's (the "ESA") group termination provision.

Background – Enforceability of Termination Provisions

At common law, it is a well-established principle that all contracts of indefinite employment are subject to an implied term that they may only be terminated by providing the employee with reasonable notice. This presumption can be rebutted by contractual language that imposes an express and enforceable limitation on the termination entitlements. However, if the contractual provision does not comply with the ESA minimum requirements for individual notice or has the potential of not meeting such requirements, the provision will be found void (Shore v. Ladner Downs, 1998 CanLII 5755 (BCCA) at para.

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