Ontario Court Rules On Ending Fixed Term Contracts

A recent decision of the Ontario Superior Court of Justice, John Howard v. Benson Group Inc. 2015 ONSC 2638, has given employers some helpful guidance on ending fixed term agreements with employees. The plaintiff in this case, Mr. Howard, had entered into an employment agreement with the defendant stating that the term of his employment was five years, commencing in September of 2012. On July 28, 2014, the defendant terminated Mr. Howard's employment with just over three years left in the term. The defendant gave Mr. Howard two weeks of severance pay, which it claimed fully satisfied Mr. Howard's entitlements under the employment agreement. Mr. Howard disagreed and commenced an action seeking payment of the remaining term. He then brought a motion for summary judgment on the interpretation of his employment agreement.