The Alberta Court of Appeal recently reviewed the enforceability of a termination clause that purported to impose limits on employee termination entitlements. In Bryant v. Parkland School Division, the Court held that a provision that entitled an employee to 60 days of termination notice or more did not unambiguously limit the employee’s termination entitlements. Three employees subject to the provision were therefore able to claim reasonable notice well above the 60-day period, in accordance with the common law.
Three long-term employees of Parkland School Division were terminated without cause, each receiving 60 days’ notice. All three were subject to the same termination provision, which stated:
This contract may be terminated by the Employee by giving to the Board thirty (30) days or more prior written notice, and by the Board upon giving the Employee sixty (60) days or more written notice.
The employees brought an action claiming notice above and beyond the 60-day period in accordance with the common law requirement of reasonable notice. The chambers judge summarily dismissed the employees’ claim, finding that the clause was unambiguous as it provided a fixed level of notice, while allowing the employer to give more notice at their discretion.
The majority of the Alberta Court of Appeal allowed the employees’ appeal, finding that the contract was not sufficiently clear, unequivocal and unambiguous to remove or limit the presumed common law...
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