Mapping out the termination process and employee entitlements in advance will reduce the sting of terminations for both sides.
Continue Reading Softer Landings Save Time, Effort and Legal Fees for Employers and Employees
Waksdale Reviews Spark Joy
A new year often means some level of house-cleaning by employers, including the updating of core workplace documents. SpringLaw has seen a spike in this work because many employers understand, now more than ever, the need to have their employment contracts reviewed, with a particular focus on termination provisions. This review should include any ancillary policies, Codes of Conduct, or plan documents referencing when and under what circumstances an immediate termination for cause can occur. We refer to this as a ‘Waksdale review’ because it is driven by the court’s reasoning in Waksdale v. Swegon North America. For legal nerds, our prior blog details why a Waksdale review is necessary. Continue Reading Waksdale Reviews Spark Joy
Waksdale: Now the Final Word on Termination Provisions – Leave to Appeal Waksdale Decision to the Supreme Court of Canada is Denied
The highest Canadian court has just confirmed that an invalid “just cause” termination section in an employment contract will also knock out the entire termination section, including the “without cause” section.
In our earlier blog discussing employment termination packages –Termination Entitlements: Benefits, Bonuses, and Commissions – we promised to keep you updated on 2020’s employment law decision of the year, Waksdale v. Swegon North America Inc. So here we go.
Leave to Appeal Denied
To recap, Waksdale was a decision from the Ontario Court of Appeal that immediately put termination provisions in jeopardy. In the case, the Court of Appeal found that the employer, Swegon North America, could not rely on their properly drafted “without cause” termination provision, in a without cause termination of their employee, Benjamin Waksdale. The reason is that the “with cause” provision in the same termination section of his contract was missing certain criteria and did not comply with Ontario’s Employment Standards Act, 2000. We wrote about the decision last summer here.
Continue Reading Waksdale: Now the Final Word on Termination Provisions – Leave to Appeal Waksdale Decision to the Supreme Court of Canada is Denied
Employers Get Out Your Contracts: An Important Ruling on Termination Provisions
This Ontario Court of Appeal decision has been the talk of the town on all the Ontario employment law blogs and while we don’t like to be followers, we also wanted to make sure our readers did not miss this important decision. In Waksdale v. Swegon North America Inc. the Ontario Court of Appeal ruled on the enforceability of specific termination provisions in an employment contract, finding the “without cause” termination provision enforceable because of a flaw in the “with cause” provision.
Courts frequently come up with new ways of invalidating employer drafted termination provisions that would restrict an employee’s entitlement to notice. The enforceability of termination provisions is what lots of employment cases are about. A properly drafted termination provision in an employment contract can significantly limit an employee’s entitlement to notice of termination. For example, a long service employee terminated “without cause” could be entitled to as little as 8 weeks or as much as 2 years of notice depending on the contract.
Continue Reading Employers Get Out Your Contracts: An Important Ruling on Termination Provisions