News & Analysis as of

Canada Severance Agreements

Ogletree, Deakins, Nash, Smoak & Stewart,...

Canada Implements Temporary Employment Insurance Measures Responsive to Economic Impacts of Trade War

The federal government of Canada recently amended the Employment Insurance Act, implementing temporary measures to address the economic impacts of tariffs imposed by the United States. ...more

Littler

Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

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In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

Littler

British Columbia, Canada Court of Appeal Affirms Enforceability of Termination Clause That Incorporated by Reference Notice and...

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In Egan v. Harbour Air Seaplanes LLP, 2024 BCCA 222, the British Columbia Court of Appeal (BCCA) upheld a lower court’s decision that a termination clause in an employment agreement was enforceable because it was neither...more

Mintz - Employment Viewpoints

Better Late Than Never: Employers in Canada Should Review Their Termination of Employment Provisions

Canadian employers should review their employment contracts and update them as necessary to avoid potentially costly problems upon separation of employment. Since early 2021 when the Supreme Court of Canada declined to...more

Stikeman Elliott LLP

An Oppressive Outcome: Alberta Court Finds Directors Responsible for Severance Obligations

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The recent decision of the Alberta Court of Queen’s Bench, Wisser v CEM International Management Consultants Ltd., 2022 ABQB 414, determined that the oppression remedy under the Alberta Business Corporations Act (“ABCA”),...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ontario Appellate Court Ruling Leaves Employers Waiting for Determination on Interpretation of COVID-19 Leave Provisions

Employers in Ontario have been waiting for clarification on the interpretation of COVID-19 leave provisions throughout much of the pandemic. Employers had hoped that the Court of Appeal’s decision in Taylor v Hanley...more

Fisher Phillips

Employers with Limited Canadian Presence May Be Required to Fulfill Significant Severance Obligations Thanks to Recent Court...

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A Divisional Court in Ontario, Canada recently issued a ruling that could have significant potential extra-jurisdictional consequences for U.S. employers with even a single employee based in Canada. The court’s June 15...more

Littler

Canada: Federally Regulated Employees Can Make Unjust Dismissal Complaints Even After Signing Releases and Settlement Agreements

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The Federal Court of Canada recently confirmed in Bank of Montreal v. Li, 2018 FC 1298 CanLII (Bank of Montreal), that an employee’s signed release and settlement agreement will not preclude a complaint for unjust dismissal...more

Littler

Ontario, Canada: Reducing the Risk That an Employer’s Release of Claims is Found Unenforceable

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When an Ontario employee executes a well-drafted release of claims upon termination, there may still be a risk that a court will conclude the release is unenforceable because it is unconscionable....more

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