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ARTICLE · 19 OCTOBER 2016

The Potential Pitfalls Of Fixed-Term Employment Contracts

Thompson Dorfman Sweatman LLP
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On October 13, 2016, the Supreme Court of Canada denied leave to appeal an Ontario Court of Appeal decision which ordered an employer to pay a former employee 37 months of salary and benefits following termination.

CanadaEmployment and HR
Terra Welsh
Terra Welsh
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On October 13, 2016, the Supreme Court of Canada denied leave to appeal an Ontario Court of Appeal decision which ordered an employer to pay a former employee 37 months of salary and benefits following termination – after only 23 months of employment.1

The employee in question had a written contract with a five-year term. The employer terminated the employee's employment 23 months into the contract, without alleging cause. The employer's right to early termination without cause was governed by the following provision:

Employment may be terminated at any time by the Employer and any amounts paid to the Employee shall be in accordance with the Employment Standards Act of Ontario.

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