Termination Clauses In BC: Perfection (Maybe) Not Required

Perhaps the most important clause in any employment contract is the termination clause.  Without it, an employee is entitled to reasonable notice of termination (in the absence of just cause). A written termination clause can even allow an employer to limit notice (or severance in lieu of notice) to what is required under the applicable employment standards legislation – the absolute minimum required by law.

However, drafting enforceable termination clauses can be tricky. A number of decisions across Canada have put the fear into employers' lawyers to ensure that these clauses are not only clear and concise (which all contracts should be anyway) but consistent with every aspect of the employment standards legislation requirements. Lawyers for employers in BC might be able to breathe a little easier, though, in light of a couple of cases in the last 18 months in which the BC courts found termination clauses to be enforceable, even in otherwise