Small Differences In Provincial ESAs Lead To Big Differences In Court

B.C. case highlights differences in the interpretation of termination clauses

In employment law in recent years, almost on a daily basis, lawyers are lauding or lamenting new court decisions regarding the validity of termination clauses. Most recently, in British Columbia, the business community and the lawyers who assist them were singing the praises of the Court of Appeal decision in Egan v. Harbour Air, which seemingly moved the needle in favour of employers who rely on termination clauses to significantly reduce their financial obligations when firing employees without cause.

While this issue, at first blush, may seem arcane to anyone outside of the legal cloister, it has a significant impact upon workers being let go from long-term (or even short-term) employment. This is especially true of the baby boomer generation, many of whom have worked for a single employer for twenty years or more and risen to senior positions.