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Employer Liability Issues › Ontario › Contract Terms

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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

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Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

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In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

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Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

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Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

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In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

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Ontario Court Rules Employer's Discretion to Terminate is Shackled by the ESA

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In Dufault v. The Corporation of the Township of Ignace ("Dufault"), the Ontario Superior Court of Justice, on a summary judgment motion, found the termination without cause provision of a fixed-term employment contract...more

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Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

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“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

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Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

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Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

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Ontario, Canada Court Reminds Employers it is Important to Adhere to Their Contracts’ Termination Provisions

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In Perretta v. Rand A Technology Corporation, 2021 ONSC 2111, Ontario’s Superior Court of Justice ordered an employer to pay an employee damages for reasonable notice at common law when it decided the employer repudiated its...more

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Ontario, Canada Court Finds Employee Repudiated Her Employment Contract When She Refused to Work Unless New Conditions Were Met

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In Anderson v Total Instant Lawns Ltd, 2021 ONSC 2933 (Total Instant Lawns), an employee claimed her job was terminated and sought damages for wrongful dismissal.  The employer denied the employee was dismissed and argued...more

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Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

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Ontario, Canada: Superior Court Determines Enforceability of Termination Clause

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The Ontario Superior Court recently issued a decision in Sewell v. Provincial Fruit Co. Limited, 2020 ONSC 4406 (Sewell), applying the reasoning set forth in the Ontario Court of Appeal (OCA) decision, Waksdale v. Swegon...more

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Ontario, Canada: In Significant Decision, Court of Appeal Analyzes Employment Agreement as a Whole When Evaluating Enforceability...

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On June 17, 2020, in Waksdale v. Swegon North America Inc., the Ontario Court of Appeal rendered a decision pertaining to the enforceability of termination provisions in employment contracts.  ...more

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Ontario, Canada: Court of Appeal Upholds Dismissed Employee’s Right to Damages for Value of Incentives That Would Have Vested...

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Whether a wrongfully dismissed employee is entitled to damages as compensation for the value of incentives that would have vested during the reasonable notice period is frequently litigated in Canada....more

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Ontario, Canada: Calculation of Reasonable Notice Period When a Contractor Becomes an Employee

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Cormier v. 1772887 Ontario Limited (St. Joseph Communications) (“St. Joseph”), 2019 ONCA 965, is an appeal from a summary judgment motion arising from the wrongful dismissal claim of a contractor who worked for St. Joseph for...more

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