Employers’ Alert – September, 2013

Late last year, Diane Bernier was fired from her management position with Nygard International Partnership after having worked for the company for 13 years. She was 54 years old at the time, and was earning total compensation of approximately $190,000. Although she was fired on a "without cause" basis, Nygard paid her only those minimum amounts to which she was entitled under the Ontario Employment Standards Act, 2000 ("the ESA"), which amounted to just over 21 weeks. Ms. Bernier sued Nygard claiming that she should have received 18 months' pay in lieu of common law notice.

Recent case provides tips for termination clauses

Before the Court, Nygard tried initially to rely on an employment contract that Ms. Bernier had signed as limiting her entitlements to the ESA. However, even her counsel agreed that the clause, as drafted, was void because it provided that she would only receive 30 days' notice and therefore failed to even satisfy Ms. Bernier's minimum ESA