Worker claims termination clause violated rights, seeks substantial compensation increase
The Supreme Court of Nova Scotia recently dealt with a significant employment law case involving the interpretation of termination clauses in employment contracts.
A worker with over eight years of service challenged his former employer's decision to provide only statutory minimum notice upon termination without cause, arguing that the contract language was unclear and potentially invalid.
The worker made two primary arguments against the employer's limited severance offer. First, he argued that the termination provision in his employment agreement was ambiguous and unclear, failing to explicitly limit his entitlement to common law reasonable notice.
Second, he contended that the termination provision was void because it attempted to contract out of statutory labour protections.
The worker had been employed as a sales representative by a family-owned group operating companies in retail hospitality and alcohol beverage industries.
He worked for one of the company's divisions for 8.5 years before his employment was terminated without cause in June 2024.
His employment was governed by a letter dated January 19, 2016, which he signed during a meeting with the company's director of human resources.
The disputed termination provision stated that upon termination without cause, the worker would receive "only such minimum notice of termination,...
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