Termination clauses are a cornerstone of any employment agreement. A well-drafted termination clause can limit an employee’s entitlements on dismissal to the minimum standards under the Employment Standards Act, 2000 (ESA), helping avoid the higher costs of common law reasonable notice.

But here is the catch: even the most carefully written clause can fail. Ontario courts are strict about wording and employer conduct. Clauses that are short, clear, and directly reference the ESA tend to stand up over time. However, one misstep in how a termination clause, or the termination itself, is handled can unravel the entire clause. Continue Reading Ontario Termination Clauses: What Really Matters