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."

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.

Free Consultation

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.

Faisal Agha

Faisal completed his Juris Doctor from University of Ottawa. He has extensive work experience at Deloitte, Scotiabank and CIBC. Faisal’s approach is grounded in a commitment to his clients’ objectives. He understands how frustrating the court process is for clients and fights to get you the best settlement possible.