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ARTICLE · 17 JUNE 2025

Don't Use Severance As Leverage: Courts Are Not Impressed

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The Ontario Superior Court recently reminded employers that employment agreements aren't optional – they're enforceable. In Timmins v. Artisan Cells, 2025 CanLII 2387...

CanadaEmployment and HR
Jeffrey Adams
Jeffrey Adams

The Ontario Superior Court recently reminded employers that employment agreements aren't optional – they're enforceable. In Timmins v. Artisan Cells, 2025 CanLII 2387, the employer ignored its own termination provisions and tried to use severance as leverage for a release. It backfired big time.

The Court found the employer repudiated the employment contract and awarded the employee nine months' common law notice, for a total of $456,908 in damages.

What Happened?

The employee started working for an American gene therapy company, Artisan Development Labs (ADL), in 2019. By 2021, he was Executive VP and leading the launch of a Canadian subsidiary, Artisan Cell Labs (ACL), in Toronto. He had a generous compensation package, including a $475,782 salary, stock options, and a bonus.

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