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Ontario Employment Litigation Employer Liability Issues

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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 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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The Function and Limits of Directors and Officers Insurance Policies in Class Actions and the Companies’ Creditors Arrangement Act

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The Ontario Superior Court has held that claims made insurance policies issued to directors and officers upon a company filing for protection under the Companies' Creditors Arrangement Act, RSC 1985, c C-36 (the CCAA) could...more

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Working for Workers Six Act, 2024: More Changes on the Horizon for Ontario’s Employment-Related Legislation

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On November 27, 2024, the Ontario government introduced Bill 229, Working for Workers Six Act, 2024 (Bill 229). This announcement comes just one-month after Ontario’s Working for Workers Five Act, 2024 (Bill 190) received...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 Orders Independent Medical Examination of Employee Claiming Indefinite Inability to Mitigate Due to Mental...

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Marshall v. Mercantile Exchange Corporation, 2024 CanLII 71128  (ONSC), is an action for wrongful dismissal where the employee claimed he could not mitigate his damages by seeking alternative employment indefinitely because...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 Human Rights Tribunal Determines Volunteer Asked to Remove Rainbow Sticker Did Not Experience Discrimination

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In Zanette v. Ottawa Chamber Music Society, 2024 HRTO 998, the Human Rights Tribunal of Ontario (HRTO) dismissed a volunteer’s application alleging discrimination with respect to employment because of sexual orientation,...more

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Ontario, Canada Court Affirms City Lacked Control of Workplace and Exercised Due Diligence, Upholding Acquittal of OHSA Charges

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In R. v. Greater Sudbury (City), 2024 ONSC 3959, the Ontario Superior Court of Justice (OSCJ) dismissed an appeal of the trial judge’s decision in which she acquitted the City of Sudbury (City) of various charges under...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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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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Ontario, Canada Court Decides Wrongfully Dismissed Employee’s Rejection of Offer of Comparable Employment Amounts to Failure to...

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In Gannon v. Kinsdale Carriers, 2024 ONSC 1060, the Ontario Superior Court of Justice denied common law reasonable notice to an employee who was wrongfully dismissed from her employment on the basis that she failed to...more

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Ontario, Canada Appellate Court Finds National Day of Mourning to Honour Memory of Queen Elizabeth II Not a Paid Holiday under...

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In Ottawa Police Services Bd. v. Ottawa Police Assn., 2023 ONSC 6225, the Ontario Superior Court of Justice (Divisional Court) (Ont. SCJ (Div. Ct.)) quashed an arbitrator’s decision allowing two grievances that claimed...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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Ontario, Canada Appeal Court Upholds Refusal to Impose Constructive Trust Over Proceeds of Sale of Property Owned by Defrauding...

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A recent Ontario Court of Appeal (OCA) decision demonstrates the process an employer may be expected to undertake to recover employee-stolen funds when the proceeds of the fraud are traced to the assets of a “stranger to the...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 Appeal Court Finds Independent Contractors Have Duty to Mitigate Damages When Fixed-Term Contract is Terminated...

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In Monterosso v. Metro Freightliner Hamilton Inc., 2023 ONCA 413, the Ontario Court of Appeal (OCA) found that independent contractors have a duty to mitigate their damages upon the early termination of a fixed-term agreement...more

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Ontario, Canada Arbitrator Upholds Reasonableness of Hospital Vaccination Policy Providing for Employment Termination of...

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An arbitrator recently issued the first award in Ontario to address and uphold the reasonableness of a hospital vaccination policy that provides for the termination of employment for non-compliance.  In Lakeridge Health and...more

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Ontario, Canada Court Awards Employee $15,000 in Moral Damages for Employer’s Bad-Faith Conduct Regarding His Dismissal

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In Teljeur v Aurora Hotel Group, 2023 ONSC 1324, a wrongful dismissal case, the court awarded the plaintiff-employee seven months’ damages for reasonable notice, and $15,000 in moral damages due to the employer’s bad-faith...more

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Ontario, Canada Court of Appeal Addresses How Employers Can Preserve Right to Unilaterally Lay Off Employees Without Being Found...

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In Pham v. Qualified Metal Fabricators Ltd., 2023 ONCA 255, the Ontario Court of Appeal (OCA) found that unless an employee’s employment contract provides otherwise via an express or implied term, an employer’s unilateral lay...more

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