
Publication
Federal EI pilot project may impact employee separation negotiations
The federal government predicts there will be a surge in EI benefits claims in the coming months.
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Canada | Publication | February 20, 2025
An Ontario court has delivered yet another unfortunate termination clause decision1. Employers may see articles and blogs once again announcing that a wide range of termination clauses are unenforceable and employees are free to claim expansive damages upon dismissal.
The reality is that the law of employment contract termination clauses is unsettled in Ontario at the moment, and this latest decision merely adds to the uncertainty.
This time around:
The reasoning here was that such language reserves the right to terminate when an employee is subject to legal protections, such as during a statutory leave of absence.
This ruling was made despite the fact the clause in question committed to payment of “any minimum compensation or entitlements prescribed by the Employment Standards Act.” The reasoning here was that “a regular employee cannot be expected to appreciate the difference” between scenarios in which employees are entitled to statutory amounts, and scenarios where they are not.
Both of these conclusions run counter to recent decisions from the same court – the Ontario Superior Court of Justice. Until the Ontario Court of Appeal steps in to resolve this competing case law, employers and employees cannot know whether:
Until we receive clarity, employers should:
Publication
The federal government predicts there will be a surge in EI benefits claims in the coming months.
Publication
As ESG concerns have come to the forefront in different jurisdictions, the scope of these inquiries is expanding in kind.
Publication
On April 8, An Act to amend various provisions mainly with respect to the financial sector, was tabled in the National Assembly further to the last financial omnibus bill that was assented to on May 9, 2024.
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