Requiring A Release In Exchange For Contractual Entitlements Has Serious Consequences For Employer

Bottom Line

The recent decision of Timmins v. Artisan Cells ("Timmins") is in line with existing case law, and represents a sobering reminder of the significant potential liability for employers who fail to comply with the terms of an employment contract upon termination of employment.

In Timmins, the Superior Court of Ontario sided with the terminated employee, holding that the employer had repudiated their own employment contract by requiring an executed release from the employee in exchange for amounts owed under the contract. This meant that the employer could not rely on their own termination clause. The case in Timmins highlights the potentially serious consequences of failing to provide an employee with their contractual entitlements.