Egan v Harbour Air Seaplanes LLP, Will B.C Case Takeoff In Alberta?

Damages for reasonable notice can often be significantly higher than what an employee would be entitled to under a notice of termination or severance pay. Accordingly, whether you are an employee or an employer, all parties can benefit from a better understanding of the validity of the termination clause in an employment contract.

When terminated without cause, employees in Canada are owed a common law period of reasonable notice. This period of notice, however, is a presumption that can be rebutted through the presence of a termination clause in their employment contract. It is in rebutting this presumption that legal ambiguity and disputes between parties arise. Although the recent 2024 Court of Appeal of British Columbia decision of Egan v Harbour Air Seaplanes LLP , 2024 BCCA 222 ("Egan") does not reinvent the proverbial wheel when it comes to termination clauses, it could help clarify when a termination clause will or will not be held as valid if challenged