The Ontario Court of Appeal has released its highly anticipated decision in respect of the appeal of two employment law decisions from last year, namely Baker v. Van Dolder’s Home Team Inc., 2025 ONSC 952 (“Baker”), and Li v. Wayfair Canada ULC., 2025 ONSC 2959 (“Li”), that dealt with, among other things, the enforceability of the termination provisions in each plaintiff’s employment contract. Despite similarities between the termination provisions in both cases, a judge of the Ontario Superior Court of Justice held that the termination provision was unenforceable in Baker, while a different judge held that the termination provision was enforceable in Li. We had previously written about Baker and Lin prior web updates.
Both cases were appealed and considered together by the Ontario Court of Appeal. The Court of Appeal held that the termination provisions in both cases were enforceable and provided helpful clarity on when termination provisions will be enforceable.
Mr. Baker was employed as a Controller, Head of Finance and was entitled to two weeks’ termination notice under the Employment Standards Act, 2000 (the “ESA”) when his employment was terminated without cause by the defendant employer. Mr. Baker’s employment was governed by an employment contract that contained the following “with cause” and “without cause” provisions:
Termination without cause: we may terminate your employment at any time, without just cause, upon providing you with only the minimum notice, or...
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