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ARTICLE · 11 NOVEMBER 2024

Employment Update

If there is no reasonable interpretation of an employment contract that could lead to an illegal outcome, then it would not violate employment laws, even if it does not exactly copy statutory language.

CanadaEmployment and HR
Barry Kwasniewski
Barry Kwasniewski

If there is no reasonable interpretation of an employment contract that could lead to an illegal outcome, then it would not violate employment laws, even if it does not exactly copy statutory language. That was the rationale in Bertsch v. Datastealth Inc., as the Ontario Superior Court of Justice upheld an employer's termination provisions, finding them compliant with the Employment Standards Act, 2000 ("ESA") and dismissing an employee's claim for wrongful dismissal. The case was heard by motion under rule 21.01(1) of the Rules of Civil Procedure, brought by Datastealth Inc. to strike out the claim as disclosing no tenable cause of action. This decision, published October 8, 2024, is significant for charities and not-for-profits in Ontario, as it emphasizes the need for clear, legally compliant employment agreements that meet ESA standards. This case is also notable in comparison with recent jurisprudence as the court sided with the employer's arguments on the

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