The Courts In Ontario Continue To Find Common Language In Termination Clauses Unenforceable

Both employers and employees often do not understand the significance of enforceable termination clauses in employment contracts. If an employee is terminated without cause and they do not have enforceable termination provisions in their employment contract, an employer can find themselves paying that employee many months of notice or pay in lieu thereof, far more than the weeks of notice they would otherwise be required to provide.

The Ontario Employment Standards Act states that if an employee is terminated without cause, they are entitled to a minimum of one week of notice for every year of service with their employer, to a maximum of 8 weeks. Notice can be provided as 'working notice' or 'pay in lieu of notice'. Working notice is where the employee continues to work for the employer through the notice period after they have been informed of their forthcoming termination date. Most employers chose to provide terminated employees with pay in lieu of notice, where