Termination Clauses

A clearly worded contract can make the difference between a smooth and rocky end to an employment relationship. While it is not included in every employment contract, some might have a termination clause that outlines the process surrounding an employee’s being let go.

Some termination clauses are unenforceable, while others may be within the employer’s rights. As every case is different, it may be of benefit to speak with a Toronto employment lawyer to discuss concerns specific to you. Contact us at Howie, Sacks & Henry LLP to book your free consultation today.

What Are Termination Clauses in Ontario?

A termination clause is a provision in an employment contract that limits the notice period in the event that the employee is terminated. A termination clause cannot attract out of the Employment Standards Act (ESA) statutory minimums, but if done properly, it can disentitle the employee from receiving common law reasonable notice. The termination clause is often for the employer’s benefit, not the employee’s.

If you have questions or concerns about a termination clause in your employment contract, contact our employment lawyers to schedule a free consultation.

Does Every Contract Have a Termination Clause?

A termination clause is not included in every contract. It is important to review your employment contract in the event that you are dismissed, to see if there is a termination clause, and to consult a lawyer for guidance as to whether the clause is enforceable.

How Are Termination Clauses Enforced?

A termination clause is part of a contract. The employer may rely upon it, upon termination, to try and limit the notice period or pay in lieu of notice to an employee. If you are terminated, you should have an employment lawyer review your employment contract. At Howie, Sacks & Henry LLP, our employment lawyers may be able to help you understand the enforceability of your contract’s termination clause.

What Are Unenforceable Termination Clauses?

There can be many reasons that a termination clause may be unenforceable. The most common is where a termination clause conflicts with the Employment Standards Act. If the clause conflicts with the ESA, it will be deemed invalid by the courts, and therefore unenforceable.

What Is an Example of an Unenforceable Termination Clause?

An example of an unenforceable termination clause may be one that stipulates you cannot get your ESA minimums in the event of your termination without cause, or one that conflicts with the definition of “just cause” in the ESA. To address questions regarding a specific termination clause, contact our Toronto employment lawyers today.

How Can an Employment Lawyer Help Me With Termination Clauses?

In the event that you are terminated, an employment lawyer may be able to review the employment contract with you, to determine whether what was offered by your employer was appropriate. Employers may attempt to make an offer that is far below what you are entitled by law, which is why it is important to speak with an employment lawyer and understand your legal rights.

Contact Our Employment Lawyers Today For a Free Consultation

It is important to understand your legal rights, particularly during the termination of an employment relationship. Contact us today at Howie, Sacks & Henry LLP to discuss the specifics of your unique circumstances.

*Please be advised that the content of this article is intended as a general overview on the subject of termination clauses in Ontario, and should not be construed as legal advice. For legal advice, please consult with a Toronto employment lawyer.

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