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ARTICLE · 27 JANUARY 2021

Enforceability Of Termination Provisions: Employers Take Note

Norton Rose Fulbright Canada LLP
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On January 15, the Supreme Court of Canada denied an application for leave to appeal from the Ontario Court of Appeal's decision in Waksdale v Swegon North America Inc.

CanadaEmployment and HR
Joseph Cohen-Lyons
Joseph Cohen-Lyons
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On January 15, the Supreme Court of Canada denied an application for leave to appeal from the Ontario Court of Appeal's decision in Waksdale v Swegon North America Inc. By doing so, the Supreme Court has left in place a decision that many believe will make it more difficult for employers to rely on the termination provisions in an employment agreement.

Background

In Waksdale, the employee's employment was terminated without cause and he was provided with entitlements upon termination as set out in his employment agreement – entitlements that exceeded the minimum requirements of the Employment Standards Act, 2000 (ESA). The employee brought a claim against his employer alleging the termination provision did not comply with the ESA, therefore was unenforceable and did not limit his entitlements to reasonable notice at common law.

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Norton Rose Fulbright is a global law firm. We provide the world's preeminent corporations and financial institutions with a full business law service. We have 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

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Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.

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