Less Is More: Ontario Court Finds Termination Provision Enforceable

In Ontario, drafting an employment agreement with enforceable termination language has been a continuous pain point for employers over the last number of years. While the law allows businesses to displace the presumption of common law notice of termination with specific language in employment agreements, Ontario courts have consistently found such termination language unenforceable for new and sometimes inventive reasons.

However, in a recent decision from the Ontario Superior Court of Justice,^[1] Bertsch v Datastealth Inc. ("Bertsch"), the Court upheld a termination provision which limited the employee's entitlements to the minimums owed under the Employment Standards Act, 2000 (the "ESA").