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ARTICLE · 20 FEBRUARY 2025

Employment Termination Clauses: Lessons From Singh v Clark Builders

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In a recent decision, the Court of King's Bench of Alberta upheld a freely negotiated termination clause with a sophisticated employee despite evolution to the employee's role over the term of employment.

CanadaEmployment and HR
Matthew Riskin
Matthew Riskin
Michael H. VanderMeer
Michael H. VanderMeer
Lauren Peebles (Articling Student)
Lauren Peebles (Articling Student)
Homa Aminnejad
Homa Aminnejad
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In a recent decision, the Court of King's Bench of Alberta upheld a freely negotiated termination clause with a sophisticated employee despite evolution to the employee's role over the term of employment. The employee's experience and involvement in the negotiations may also be used to resolve any apparent ambiguity in the termination clause.

In Singh v Clark Builders, 2025 ABKB 3,1 the Court upheld a termination clause limiting the employee's notice entitlement to 90 days, despite the employee's promotion from Vice President to Chief Operating Officer.

Key Facts and The Termination Clause

Mr. Singh, a seasoned executive, was recruited by Clark Builders (the Company) after nearly a year of negotiations. After rejecting multiple earlier offers, Mr. Singh signed an Offer of Employment and a separate contract, which he personally negotiated. The termination clause he proposed, and was accepted by the Company, specified a 90-day notice period for termination

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