News & Analysis as of

Ontario Hiring & Firing Employment Litigation

Blake, Cassels & Graydon LLP

British Columbia and Ontario: Two Diverging Approaches to Interpreting Termination Provisions

Overview - Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court...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

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

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

Bennett Jones LLP

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

Littler

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

Bennett Jones LLP

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

Littler

Ontario, Canada Court Upholds Provision Limiting Employee’s Termination Rights to Minimums Under Employment Standards Legislation

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In Bertsch v. Datastealth Inc., 2024 ONSC 5593, the Ontario Superior Court of Justice dismissed an employee’s claim for common law reasonable notice of termination on a Rule 21 motion....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

Littler

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

Littler

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

Ius Laboris

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

Littler

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

Stikeman Elliott LLP

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

Littler

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

Bennett Jones LLP

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

Stikeman Elliott LLP

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

Littler

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

Littler

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

Bennett Jones LLP

More Changes to Ontario's Employment-Related Legislation Are on the Horizon

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On March 20, 2023, the Ontario government introduced Bill 79, Working for Workers Act, 2023 (Bill 79), which, if passed, will introduce changes to Ontario's Employment Standards Act, 2000 (ESA) and other employment-related...more

Littler

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

Stikeman Elliott LLP

“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

Littler

Ontario, Canada Court of Appeal Sets Aside Judgment Reducing Employee’s Reasonable Notice Period for Failure to Mitigate

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In Lake v. La Presse, 2022 ONCA 742, the only issue on appeal was whether the lower court erred in reducing the employee’s wrongful dismissal damages for failure to mitigate. The Ontario Court of Appeal (OCA) set aside the...more

Littler

Ontario, Canada Court Determines Plaintiff Employee (Not Independent Contractor) Wrongfully Terminated by Common Employers

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In a wrongful dismissal action against four corporate defendants that were part of a family business, the plaintiff claimed the defendants were common employers, that he was their employee prior to his dismissal, and was...more

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