Much Ado About Benefits: The Enforceability Of Termination Clauses

Ontario's Court of Appeal recently released its decision in Wood v. Fred Deeley Imports Ltd., which focused on the enforceability of a termination clause in the employee's employment contract.  The decision seems to bring much-needed clarity to an issue that appeared to be growing increasingly uncertain: Is a contractual termination clause unenforceable in Ontario for failing to explicitly reference benefit continuation during the period of statutory notice?

During her employment, Julia Wood was entitled to a base salary, an incentive bonus and employer contributions to both group health and dental insurance and a registered retirement savings plan.  At the outset of her employment, she also signed a written employment agreement that contained the following termination provisions: