• Common law reasonable notice of termination can vary significantly from what is described in an employment contract
• Employment contracts will not be interpreted in the same way as commercial contracts according to the Alberta Court of Appeal
• Canadian courts are very aware of the power imbalance between employers and employees
• Termination clauses must be closely monitored and continually reviewed by employers

Recently, the Alberta Court of Appeal considered the enforceability of a provision in an employment contract that attempted to limit the termination notice for three employees to 60 days. In Bryant v Parkland School Division, 2022 ABCA 220 [Bryant], the Court found that the termination clause in question was not "sufficiently clear, unequivocal and unambiguous to remove or limit the presumed common law right of employees to reasonable notice." The decision is noteworthy as it demonstrates the exacting and unique standard that termination clauses in an employment contract will be held to.

Background

Employers often include a termination provision in their standard employment contracts in order to limit the termination notice for an employee, in many cases to the minimum notice required under the applicable employment standards legislation. Without such a contractual limitation, it is an implied term in every employment relationship that an employee will receive reasonable notice at common law of the termination of their employment.

The difference between common law...

Read Full Story: https://www.jdsupra.com/legalnews/alberta-court-of-appeal-strikes-down-7761490/