Recent case builds on previous decisions setting high standards for employers
BY Thaniya Jeyachandra 17 Apr. 2025
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In Baker v. Van Dolder’s Home Team Inc., 2025 ONSC 952, the Ontario Superior Court of Justice reinforced the importance of termination provisions in employment agreements. This case applied the principle that if a portion of a termination provision is unenforceable, the entire termination provision is unenforceable. Employers need to be wary of the language used in their employment agreements.
In Baker, the worker was terminated “without cause” by his employer, Van Dolder’s Home Team, in May 2023. The issue to be determined by the court was whether the “with cause” provision of the employment contract was enforceable. The court found that the termination provision was unenforceable and dismissed the motion for summary judgment.
In coming to this conclusion, the court went through an analysis of both the “with cause” and “without cause” termination provisions in the worker’s employment contract.
The court referred to the Ontario Court of Appeal decisionWaksdale v. Swegon North America, 2020 ONCA 391, in discussing how to determine whether the “with cause” provision of the employment agreement was unenforceable. First, the court had to consider whether the “with cause” provision was unenforceable by reason of its wording, and second, whether the “without cause” termination provision was unenforceable, which would render the “with cause” provision...
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