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ARTICLE · 07 DECEMBER 2023

Fixed-Term Contracts And The Duty To Mitigate

Gardiner Roberts LLP
Gardiner Roberts LLP
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Employers often mistakenly believe that they are better protected by choosing fixed-term (temporary) employment arrangements instead of indefinite (permanent) employment arrangements.

CanadaEmployment and HR

Employers often mistakenly believe that they are better protected by choosing fixed-term (temporary) employment arrangements instead of indefinite (permanent) employment arrangements.

While this may be true in very limited circumstances – i.e. to cover pregnancy/parental leaves and/or seasonal jobs where the end date of the contract is somewhat certain, in the vast majority of situations, fixed-term contracts are not advisable because the implications for employers who seek to terminate employees under fixed-term contracts can be quite severe.

Ontario's Employment Standards Act, 2000 provides that employees employed pursuant to a fixed-term employment contract are not entitled to notice on termination (or pay in lieu thereof) unless:

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