Ontario Court of Appeal rules termination provisions are only enforceable if all of their clauses are legal under employment standards legislation
Background
On June 17, 2020, the Ontario Court of Appeal rendered a decision pertaining to the enforceability of termination provisions in employment contracts. The court took the position that the proper method for determining whether a termination clause in an employment agreement is enforceable is to analyze the agreement as a whole rather than on a piecemeal basis. This decision is highly significant for employers in Ontario and its significance may extend to employers throughout Canada.
