Is Your Termination Clause Enforceable? Check Again!

Enforceable termination clauses in valid employment agreements are a key tool of employers in limiting liability to employees at the time of dismissal. We regularly recommend that employers implement contracts and assist in drafting enforceable termination clauses; however, this can be a frustrating process for employers as the courts seemingly keep moving the goal posts. Throughout the past few years we have regularly blogged on decisions at all levels of the court system addressing termination clauses – and what does and does not make them enforceable. The decision of Movati Athletic (Group) Inc v Bergeron in December 2018 provides yet another opportunity to consider this issue. In this decision, the Divisional Court reviewed a summary judgment motion finding that the termination clause was not enforceable.