Failure To Comply With ESA Minimums Can Be Fatal…

At the time of an employee's termination, the most crucial clause is typically that relating to the employee's entitlement upon a without cause termination. It is therefore critical that the termination clause comply with the minimum provisions set out in the Employment Standards Act (the "ESA").

This was recently demonstrated in the case of Wood v. Fred Deeley Imports Ltd., 2017 ONCA 158 ("Wood") where the Ontario Court of Appeal held that any breach of the ESA in a termination clause will render such clause unenforceable.

In Wood, the employee was hired as a sales and event planner for the employer which operated as a distributor for Harley-Davidson motorcycles. Her compensation included a base salary, incentive bonus and contributions by the employer to two benefit plans: a health and dental plan and RRSP.