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Ontario Employer Liability Issues Employment Contract

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Ontario, Canada Court Confirms a Clearly Drafted Temporary Layoff Clause Can Protect Employers From Constructive Dismissal Claims

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In Taylor v. Salytics Inc., 2025 ONSC 3461, the Ontario Superior Court of Justice considered whether a temporary layoff provision in an employment contract constituted a termination provision, and was therefore subject to the...more

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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, Canada Court of Appeal Agrees “For Cause” Termination Provision Was Unenforceable Because it Did not Comply with ESA’s...

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Applying prior precedent, the Court of Appeal for Ontario (OCA) in Dufault v. Ignace (Township), 2024 ONCA 915, upheld the Ontario Superior Court of Justice’s (OSCJ) finding that the “for cause” termination provision in an...more

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

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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New Regulations Regarding the Hiring Process: Key Dates and Information for Ontario Employers

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Ontario has recently published regulations offering employers further details on the new amendments to the Employment Standards Act, 2000 (ESA) related to the hiring process....more

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Ontario, Canada Court Finds Termination Provisions Unenforceable and Awards Employee Punitive Damages

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Wilds v. 1959612 Ontario Inc., 2024 ONSC 3452, involves a wrongful dismissal action in which the employee brought a motion for summary judgment. The court found the termination provisions in her employment agreement were...more

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Ontario, Canada Appellate Court Provides Guidance to Employers on How to Draft Employment Settlement Documents

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The Court of Appeal for Ontario found that settlement documents signed after an employee separated from employment prevented him from suing for the value of vested stock options....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 Appeal Court Confirms Employment Contract Frustrated by Employee’s Refusal to Comply With COVID-19 Vaccination...

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In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Court of Appeal for Ontario (OCA) upheld the Superior Court of Justice – Ontario (SCJ)’s summary judgment decision that an employee’s refusal to comply with their employer’s...more

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Canadian court upholds termination of unvaccinated worker

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The Ontario Court of Appeal recently held that an employee’s failure to meet COVID-19 vaccination requirements imposed by a third party amounted to frustration of the employment contract. As a result, there was no obligation...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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Changes to Ontario's Employment-Related Legislation Have Arrived

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As you may have heard or read in our earlier blog, More Changes to Ontario's Employment-Related Legislation Are on the Horizon, the Ontario government introduced Bill 79, Working for Workers Act, 2023 in late March 2023. On...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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Ontario, Canada Court Finds Employment Contract Frustrated by Employee’s Refusal to Become Vaccinated Against COVID-19

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In Croke v. VuPoint Systems Ltd., 2023 ONSC 1234, Ontario’s Superior Court of Justice decided that an employee’s refusal to comply with mandatory COVID-19 vaccination requirements resulted in the frustration of the parties’...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 of Appeal Finds Employers’ Discretion in Awarding Discretionary Bonuses Must be Exercised Fairly and...

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In Bowen v. JC Clark Ltd., 2022 ONCA 614, the Ontario Court of Appeal (OCA) put employers on notice that their discretion in awarding discretionary bonuses is not unconstrained and must be exercised fairly and reasonably. ...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 Appeal Court Decides Non-competition Clause in Employment Agreement Governed by Common Law is Unenforceable

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In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more

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Ontario Superior Court on the Enforceability of Termination Provisions in Employment Agreements

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A Question of Mixed Fact and Law - In a decision for which leave to appeal was denied by the Divisional Court, the Ontario Superior Court of Justice recently confirmed that a Rule 21 motion, seeking a determination of a...more

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Ontario, Canada Court Confirms Working for Workers Act, 2021 Does Not Void Non-compete Agreements Entered into Prior to October...

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Ontario’s Bill 27, Working for Workers Act, 2021 (Act), became law on December 2, 2021. Among other things, the Act amends the Employment Standards Act, 2000 to prohibit employers and prospective employers from entering into...more

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Ontario Employers: Workplace Resolutions for 2022

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Throughout 2021, employers continued to grapple with the challenges posed by the COVID-19 pandemic. As a result, employers may not have been focused on workplace priorities unrelated to COVID-19. In the circumstances, we have...more

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Ontario, Canada Court of Appeal Clarifies Relationship Between Common Employer Doctrine and Concept of Corporate Separateness

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In O’Reilly v. ClearMRI Solutions Ltd., 2021 ONCA 385 (ClearMRI Solutions), the Ontario Court of Appeal (OCA) decided that the motion judge erred in concluding that a majority shareholder of an employee’s contractual employer...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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