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ARTICLE · 08 JULY 2022

Recent Wrongful Dismissal Case Highlights Termination Risks And Lingering Pandemic Impacts

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Employers considering separating with employees on a for cause or without cause basis should be on alert in the wake of challenging new case law developments.

CanadaEmployment and HR
Alex Ognibene
Alex Ognibene
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Employers considering separating with employees on a for cause or without cause basis should be on alert in the wake of challenging new case law developments.

In Gracias v. Dr. Walt Dentistry,1 the Ontario Superior Court of Justice addressed a number of hot-button wrongful dismissal issues that have vexed (and often perplexed) employers throughout the COVID-19 pandemic.

The Court found against the employer in Gracias on most material issues in the case, except the impact of the COVID-19 pandemic on the employee's reasonable notice period. Employers should take note of the following dispositions in Gracias:

1. Termination Clause & Contractual Enforceability

The employee in Gracias was terminated without cause. Her employment agreement contained a termination clause which limited her entitlements in a termination without cause to the minimum entitlements required by the Ontario Employment Standards Act, 2000 (the "ESA").2

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