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ARTICLE · 21 JANUARY 2021

Will Your Termination Clause Stand Up In Court?

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On January 14, 2021, the Supreme Court of Canada denied an application for leave to appeal an Ontario Court of Appeal decision that dealt with the enforceability of the termination clauses within...

CanadaEmployment and HR
Jana Linner
Jana Linner
Jianna Rieder
Jianna Rieder
Megan Kheong
Megan Kheong
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Supreme Court of Canada Denies Leave to Appeal in Waksdale Decision

On January 14, 2021, the Supreme Court of Canada denied an application for leave to appeal an Ontario Court of Appeal decision that dealt with the enforceability of the termination clauses within an employment agreement. In Waksdale v Swegon North America Inc., 2020 ONCA 391 (Waksdale), the Ontario Court of Appeal held that the termination clauses in an employment agreement must be read as a whole, and if any portion contravenes the Ontario Employment Standards Act (ESA), the entire termination clause in the contract will be unenforceable.

This decision changes how termination clauses will be interpreted in Ontario, and it has the potential to affect employment contracts nationwide.

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