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ARTICLE · 09 SEPTEMBER 2025

No Constructive Dismissal: Why A Contractual Lay-Off Provision Is Not A Termination Provision

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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice concluded that a temporary lay-off provision in an employment contract is not a termination provision, and was therefore not invalidated by the other termination provisions in the contract.

CanadaEmployment and HR
Jasmine Law
Jasmine Law
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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice concluded that a temporary lay-off provision in an employment contract is not a termination provision, and was therefore not invalidated by the other termination provisions in the contract. As such, when the employee was placed on a temporary lay-off, he was not constructively dismissed.

What Happened?

Prior to joining Salytics Inc. (the "Company") in July 2013, the employee signed an employment contract. One of the sections in the contract was labelled "Termination" and contained the following clauses:

Termination

Salytics may terminate your employment at any time for cause.

Salytics may terminate your employment without cause at any time by providing you with the minimum notice, or pay in lieu of such notice, and any severance pay required by the Employment Standards Act, 2000 and no more except in the event a lay-off is required within the first six (6) months of your

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