In a recent decision, Waksdale v. Swegon North America, 2020 ONCA
391, the Ontario Court of Appeal ("ONCA") held
that a "without cause" termination provision in an
employment agreement was unenforceable because a separate
"with cause" termination provision did not comply with
the Ontario Employment Standards Act, 2000 (the "ON
ESA").
Mr. Waksdale had been employed by Swegon for eight months when
he was dismissed without cause. His employment agreement provided
that if employment was terminated without cause, he would receive
one week of notice or pay in lieu of such notice in addition to the
minimum notice or pay in lieu of such notice and statutory
severance pay as may be required under the ON ESA. Swegon provided
Mr. Waksdale with the payments required under the terms of the
employment agreement.
