Ontario: Without-Cause Termination Provision Upheld

​A Canadian employee’s attempt to invalidate an employment contract failed, even though one provision in the contract, the just-cause termination provision, was invalid. The Ontario Superior Court of Justice (ONSC) relied on and upheld the portion of the employment contract that provided short notice and relatively low pay, the without-cause termination provision, because the employee was fired without cause.

When just cause for dismissal exists at common law, which is a high standard, an employer can terminate the employment relationship without providing common-law notice or pay in lieu of notice. However, depending on the nature of the employee misconduct, the dismissed employee may still be entitled to statutory termination payments under the…

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Credit to David J. Master and Monty Verlint for the original post.

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