Will We Ever Get Clarity On Termination Clauses? The Uncertainty Continues

Back in February, I dicsussed the (then) recent cases of Dufault and Baker. In the months since, there have been several cases that have addressed similar language, with widely divergent results. I felt it my duty to update all of you on where we seem to be landing, and sadly, we're not much further ahead.

Three cases have revisited the question of termination provisions that contain language allowing an employer to terminate "at any time", each drawing very different conclusions:

• In Jones, the court determined that "at any time" would not invalidate a termination provision absent the employer reserving the right to do so at its "sole discretion".

• In Li, the court determined that "at any time and for any reason" was enforceable even though "for any reason" is arguably similar to "sole discretion" (given that an employer could choose to terminate for reasons that are illegal – for instance as a reprisal for exercising a protected right).