A series of Ontario cases dating back to 2012 has put into issue
the question of what does, or doesn't, make a termination
provision enforceable. After a number of recent
employer-friendly decisions, the Ontario Court of Appeal has
weighed in with a decision that contains some good news, and some
bad news, for employers.
In Wood v. Fred Deeley Imports Ltd., the court
primarily looked at: (i) whether or not consideration was required
to uphold an employment agreement; and (ii) whether the termination
provision in the agreement was unenforceable (thereby opening the
door to a common law notice award). The Plaintiff, Julia
Wood, was an 8.4 year employee at the time of her
termination. She signed an employment agreement the day after
she started work that contained a termination provision which
provided for "2 weeks' notice of termination or pay in
lieu thereof for each completed or partial year of
employment...". The termination provision also
stated that "... the
