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ARTICLE · 23 JANUARY 2015

Termination Clauses: A Cautionary Tale

Anyone involved in the human resources side of management will be familiar with the concept of notice periods for terminated employees, and how they are calculated.

CanadaEmployment and HR

Anyone involved in the human resources side of management will be familiar with the concept of notice periods for terminated employees, and how they are calculated.  In most cases, the primary factor involved in determining the appropriate length of a reasonable notice period is the employee's length of service.  However, this is not always the case.  In cases dealing with particularly senior and specialized employees, significant notice periods may be awarded even for employees with short service.  In such cases, employment contracts with termination clauses can take on even greater importance for employers attempting to maximize their flexibility and limit their liability.

In Rodgers v CEVA, the plaintiff had been hired as the most senior employee in the Canadian division of the defendant, which handled trucking and logistics.  The plaintiff was responsible for 500 employees and sales in excess of $140 million annually.

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