In Ghazvini et al v. Canadian Imperial Bank Of Commerce, 2025 ONSC 5218 (“Ghazvini”), two former employees working at a federally regulated bank relied on Ontario case law to challenge their termination clauses under the Canada Labour Code, RSC 1985, c L-2 (the “CLC”). The Ontario Superior Court of Justice held that the clauses were unenforceable because the “for cause” provision purported to allow termination in circumstances broader than would be permitted under the CLC’s strict “just cause” standard, consistent with the principles from the Ontario Court of Appeal’s decision in Waksdale v. Swegon North America Inc., 2020 ONCA 391 (“Waksdale”). Further, the Court, although ultimately declining to decide the issue, supported the notion that the language in the “without cause” provision, permitting the employer to terminate employment at “any time,” also risked conflicting with statutory protections in accordance with emerging jurisprudence. The Court held that such deficiencies could not be cured by a savings provision. As a result, Canadian Imperial Bank of Commerce (“CIBC”) owed the Plaintiffs common law reasonable notice, which was significantly higher than the amounts provided for under their employment agreements.
The Plaintiffs, former Mobile Investment Consultants at CIBC, were terminated without cause during a company restructuring. They did not sign a release and thus were paid only their minimum entitlements under the CLC.
The Plaintiffs...
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