Employers cannot fire you at their sole discretion... at any time...
In a decision dated February 16, 2024, the Ontario Superior Court of Justice struck down a termination provision that stated the employer could terminate an employee’s employment in its “sole discretion… at any time”. The judge held that the provision violated the Employment Standards Act, 2000 (“ESA”), and that the employer could not rely on it to limit the employee’s entitlement to termination notice.
Dufault
In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029 (“Dufault”), the Plaintiff was employed as a Youth Engagement Coordinator pursuant to a fixed-term employment agreement (the “Agreement”). Subsequently, the Plaintiff’s employment was terminated by the employer without cause within two months.
Termination Clause
Justice Pierce reviewed the following without cause termination clause:
“The Township may at its sole discretion and without cause, terminate this Agreement and the Employee’s employment thereunder at any time upon giving to the Employee written notice as follows:
(i) the Township will continue to pay the Employee’s base salary for a period of two (2) weeks per full year of service to a maximum payment of four (4) months or the period required by the Employment Standards Act, 2000 whichever is greater. This payment in lieu of notice will be made from the date of termination, payable in bi-weekly instalments on the normal payroll day or on a lump sum basis at the discretion of the Township, subject at all times to the provisions of the Employment Standards Act, 2000."
The Court ruled that the Termination Provisions were unenforceable because they purported to permit the Defendant to terminate the Plaintiff’s employment in its “sole discretion… at any time”. The Court ruled that the Termination Provisions contravened the job protections provided by the ESA. Specifically, on the conclusion of an employee’s statutory leave of absence, or in reprisal for attempting to exercise a right under the ESA.
Consequently, the Court awarded the Plaintiff with the remainder of their fixed-term Agreement. So, Employers cannot fire you at their sole discretion... at any time...
Message for Terminated Employees
Markedly, the Courts recognize your rights. Hence, DO NOT sign severance package agreements without consulting us.
Additionally, documents detailing severance packages can often pose challenges in determining whether the offer is adequate. In cases of wrongful dismissal, where an employer fails to provide sufficient severance pay, clarity regarding severance calculations becomes crucial. Furthermore, this blog further elucidates on such calculations.
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Employers cannot fire you at their sole discretion... at any time... AND our severance pay lawyers will take the time to gather information about you, your job, the company, your compensation and the events leading up to termination.
Employment lawyer in Toronto. JD, University of Ottawa. About Faisal
This article is general information about Ontario employment law, not legal advice. Every situation is different. For advice about yours, book a free consultation.