Court examines whether invalid termination clauses make entire contract section unenforceable
Ontario's Superior Court of Justice recently dealt with a significant employment law dispute involving temporary layoff provisions in employment contracts and their relationship to constructive dismissal claims.
The case examined whether such provisions constitute termination clauses subject to Employment Standards Act compliance requirements.
A worker with over a decade of service argued that his temporary layoff constituted constructive dismissal because other parts of his employment contract's termination section violated employment standards legislation.
He maintained that when any portion of termination provisions is invalid, the entire section becomes unenforceable, including temporary layoff clauses.
The worker had been employed by the technology company for eleven years, progressing from lead developer to senior technical consultant.
His employment contract contained a "Termination" section with three clauses: termination for cause, termination without cause with minimum Employment Standards Act (ESA) entitlements, and temporary layoffs stating:
"In the event a temporary lay-off is ever required, it may be implemented in accordance with the requirements of the Employment Standards Act, 2000."
The company experienced severe financial difficulties during 2024, with revenue dropping 60% compared to the previous year.
...USCellular urged the U.S. Supreme Court Wednesday to uphold a D.C. Circuit ruling that dismissed whistleblowers’ False Claims Act (FCA) claims alleging spectrum auction fraud, branding their reque...