On August 6, 2026, the Ontario Court of Appeal released Baker v. Van Dolder’s Home Team Inc., resolving two consolidated appeals and clarifying the interpretive framework for termination clauses in employment contracts—particularly the enforceability of provisions permitting termination “at any time” or “at any time and for any reason.”

Quick Hits

• In Baker v. Van Dolder’s Home Team Inc. (2026 ONCA 568), the Ontario Court of Appeal unanimously held that without-cause termination provisions containing the words “at any time” or “at any time and for any reason” are not, by that language alone, inconsistent with the Employment Standards Act, 2000 (ESA) and are therefore enforceable.
• The decision provides an authoritative interpretive framework: termination provisions must be read in context, with a view to the objective intentions of the parties, rather than through a literal, isolated reading that strains to find ambiguity where none exists.
• The court also confirmed that a with-cause provision defining “cause” more broadly than the ESA’s “wilful misconduct” standard is enforceable where it expressly preserves the employee’s minimum ESA entitlements.

The decision offers much-needed clarity for employers and employment counsel seeking to draft enforceable termination provisions that limit obligations to ESA minimums without running afoul of the statute.

The Facts

Frederick Baker commenced employment with Van Dolder’s Home Team Inc. on November 2, 2020, as its controller,...

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