Failure To Comply With Termination Provisions May Be Considered Repudiating A Valid Employment Agreement

The case Perretta v. Rand A Technology Corporation, 2021 ONSC 2111, demonstrates that employers must abide by termination clauses as they run the risk of being found to have repudiated an otherwise valid employment agreement due to their conduct.

Facts

The plaintiff, Perretta, was terminated from her position without cause after working with the defendant for 5.5 years. The plaintiff's employment contract provided that Rand A Technology Corporation ("Rand") could terminate her employment without cause by providing two weeks of notice or pay in lieu of notice plus the minimum notice or pay in lieu of notice, benefits, and severance pay required by the Employment Standards Act   ("ESA"). Instead of abiding by the clause, the plaintiff was advised by Rand that the additional two weeks owed beyond the ESA minimums would be withheld unless she signed a full and final release, a condition that was not included in the employment contract. After consulting with