Pay What You Promise – A Termination Gone Wrong

The recent Ontario Superior Court decision of Timmins v. Artisan Cells, 2024 ONSC 7123 highlights the importance of employers fulfilling their contractual obligations upon termination.

In this case, the Plaintiff alleged that the Defendants had repudiated his employment agreement through their conduct when they failed to pay him his contractually mandated severance upon termination. Repudiation of a contract occurs when one party to a contract clearly demonstrates, through words or actions, that they do not intend to fulfill their obligations under the agreement, essentially refusing to perform the contract. As such, the plaintiff argued that he was no longer subject to the termination provisions in his Employment Agreement and was entitled to common law notice.