Confidentiality and conflict-of-interest clauses can render
employment agreement termination clauses unenforceable.
In a recent
decision, the Ontario Superior Court of Justice found
that the confidentiality and conflict-of-interest clauses of an
employment agreement were unlawful, rendering the otherwise lawful
termination provision invalid and the employment agreement
unenforceable. As a result, the employer was ordered to pay the
employee common law notice.
What Happened
The defendants were oral surgeons who operated dental offices in
Ontario. The plaintiff was a receptionist at one of the
defendants' offices and had worked there since 1990.
In 2015, the oral surgeons made preparations to retire,
including offering all employees written employment contracts so
they would understand what to expect from the surgeons'
impending retirements.
