‘The whole concept of probationary employment, it's hard to see how that's not wrapped up with termination’: lawyer
A termination clause limiting a worker’s termination notice and establishing a probationary period is unenforceable for potentially breaching employment standards legislation, an Ontario court has ruled.
The worker began employment with NYX Capital Corp., a Toronto-based private equity real estate investment firm, in October 2021 with the job titles of “Vice President – Acquisitions and Asset Management and Chief Compliance Officer.”
The worker’s employment agreement had a termination clause stating that the first three months of his employment were probationary, during which NYX could terminate his employment “at any time and for any reason at its discretion, without notice or pay in lieu of notice, or other obligation.” The clause also stated that after he completed three months of employment, NYX could terminate his employment “at any time without cause” by providing him with notice, pay in lieu of notice, benefits continuation and severance pay, plus “any other benefits or entitlements strictly required in accordance with the minimum requirements set out in the ESA [Ontario Employment Standards Act, 2000].”
The termination clause also had a provision allowing the company to dismiss the worker “at any time for cause” without any notice, severance pay, or other obligation.
NYX terminated the worker’s employment on Jan. 10, 2022 - one day before the end of...
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