I have previously posted case law where the courts have doubled-down on the decision in Waksdale v. Swegon North America Inc., 2020 ONCA 391, where an employment agreement was found to be unenforceable because one of its clauses (not at issue) was inconsistent with the Employment Standards Act. More specifically, a problematic for-cause termination provision was found to have voided an otherwise sufficient without-cause termination provision. In the absence of an agreement to the contrary, the claimant (who was terminated without cause) was entitled to common law damages. More recently, the Ontario Court of Appeal in Kopyl v. Losani Homes (1998) Ltd., 2024 ONCA 199, has distinguished Waksdale. There, a fixed-term clause was upheld, notwithstanding an invalid without-cause termination provision. In other words, it limited Waksdale to the realm of termination provisions. I think this is a positive development, particularly as it provides more certainty. However, I can imagine that the waters will remain choppy in this area for some time. https://lnkd.in/gAzsn7p8
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In Patterson Belknap’s latest client alert, members of the firm’s Employment Law practice break down the details of the FTC’s Final Rule broadly banning non-compete agreements nationwide. The rule, which becomes effective on September 4, 2024 absent a judicial determination that the FTC lacks authority to implement such a Final Rule, defines non-compete agreements as violations of the FTC Act, but makes a few noteworthy exceptions to the prohibition. To read our Employment Law alert on this topic, please click here: https://lnkd.in/eWPW8_SH Lisa Cleary Douglas Tang Jacqueline Bonneau Alexandria Piacenti Gupta #EmploymentLaw #FTC #noncompete
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Navigating termination clauses in employment contracts requires a meticulous approach. Each word holds significant weight and can be the difference between enforceability and liability. ⚖️ In a recent decision, the court found that a termination clause was inappropriate because it allowed for termination “at any time” and “at the employer’s sole discretion.” 📅 Join members of our Employment Labour & Equalities Law Group for a webinar on April 25, where they will discuss this new case law development. 💡 Register now: https://gowlg.co/3W28z0U Expect to gain valuable insights and updates on the enforceability of contractual termination clauses. Topics include: 👉 Legal principles regarding termination clauses 👉 Impact of the Court of Appeal decision of Waksdale v. Swegon North America Inc. 👉 New decision of Dufault v. The Corporation of the Township of Ignace 👉 Recommended steps for employers to mitigate risks Elisa Scali, Chris Andree, Craig Stehr & Jordan Epstein | #HR #HumanResources #EmploymentLaw
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Federal Judge Issues Injunction Against FTC Non-Compete Rule On July 3, 2024, a federal judge in the Northern District of Texas issued a preliminary injunction against the FTC's non-compete rule, which was set to go into effect on September 4, 2024. The judge indicated a “substantial likelihood” that the rule will be struck down as an overreach of the FTC’s authority. Scott Atwood, chair of Henderson Franklin's Employment Law Group, discusses what this means for employers and advises caution in making changes to non-compete agreements. Stay informed and contact at scott.atwood@henlaw.com for guidance on navigating this evolving legal landscape. https://lnkd.in/eHrb_53Z #swfl #law #HF100 #FTC #LegalUpdate #NonCompete #EmploymentLaw #SHRM #Hlaw #swflhrlaw
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The second edition of Employment and Safety - Legal Insights from Panetta McGrath is now available. In this issue, delve into our latest articles covering recent developments and key updates in employment law that you need to know. If you have any questions, feel free to reach out to our team of experts. Click https://lnkd.in/g6FD4AXB to read. #employmentlaw #safetylaw #workplacerelations
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In a recent ruling in De Castro v. Arista Homes Limited, Ontario’s Superior Court of Justice reaffirmed the significance of the Waksdale decision, impacting the enforceability of termination provisions in employment contracts. Key Takeaways for Employers: ● Broad "Cause" Definitions: The Court struck down the termination provision, which defined “cause” more broadly than the Employment Standards Act (ESA). This invalidated the entire termination clause, entitling the employee to common-law notice. ● Mitigation Obligations: Employers must prove that dismissed employees failed to mitigate damages. Merely presenting LinkedIn profiles of comparable roles isn’t enough. Employers should actively assist in the employee's job search, such as offering reference letters, job leads, or counselling. What This Means for Employers: 1️⃣ Ensure termination clauses in your employment contracts align with the ESA's definitions. 2️⃣ Provide concrete help and evidence in support of mitigation efforts. 3️⃣ Seek legal guidance to avoid costly mistakes. 📞 Need help navigating employment law? Contact Minken Employment Lawyers today! 📧 contact@minken.com | 📞 905-477-7011 #EmploymentLaw #OntarioLaw #Waksdale #TerminationProvision #EmploymentContracts #MinkenEmploymentLawyers #LegalGuidance #Mitigation
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In a recent ruling in De Castro v. Arista Homes Limited, Ontario’s Superior Court of Justice reaffirmed the significance of the Waksdale decision, impacting the enforceability of termination provisions in employment contracts. Key Takeaways for Employers: ● Broad "Cause" Definitions: The Court struck down the termination provision, which defined “cause” more broadly than the Employment Standards Act (ESA). This invalidated the entire termination clause, entitling the employee to common-law notice. ● Mitigation Obligations: Employers must prove that dismissed employees failed to mitigate damages. Merely presenting LinkedIn profiles of comparable roles isn’t enough. Employers should actively assist in the employee's job search, such as offering reference letters, job leads, or counselling. What This Means for Employers: 1️⃣ Ensure termination clauses in your employment contracts align with the ESA's definitions. 2️⃣ Provide concrete help and evidence in support of mitigation efforts. 3️⃣ Seek legal guidance to avoid costly mistakes. 📞 Need help navigating employment law? Contact Minken Employment Lawyers today! 📧 contact@minken.com | 📞 905-477-7011 #EmploymentLaw #OntarioLaw #Waksdale #TerminationProvision #EmploymentContracts #MinkenEmploymentLawyers #LegalGuidance #Mitigation
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PSA to Ontario Employers and Business Owners: If you’d like your termination provision reviewed for free to determine its enforceability considering developments in binding Ontario case law, more than happy to schedule a call. A Company’s liability and exposure to additional operating costs correlate to the analysis of the termination provisions in its existing employment contracts. This issue can be easily resolved. Don’t hesitate to reach to have your existing termination provisions reviewed without charge. Cheers,
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SC judgment dated 05/12/2024: Termination - Service : Termination of employee without following natural principles of law is arbitrary and illegal Observed at paragraphs:- 12.6. It is manifestly clear from the above judgments that reasons are heartbeat of every order and every notice must specify the grounds on which the administrative or quasi-judicial authority intends to proceed; if any document is relied upon to form the basis of enquiry, such document must be furnished to the employee; it is only then a meaningful reply can be furnished; and the failure to furnish the documents referred and relied in the notice would vitiate the entire proceedings as being arbitrary and in violation of the principles of natural justice; and before taking any adverse decision, the aggrieved person must be given an opportunity of personal hearing. In the light of the same, we have no hesitation to hold that the order of termination passed against the appellant is arbitrary, 12 (2024) 1 SCC 632 : 2023 SCC OnLine SC 621 19 illegal and violative of the principles of natural justice and it cannot be sustained. 12.7. Though we are in agreement with the proposition laid down in the decisions cited on the side of the respondent(s), the same does not apply to the present case, which factually differs. 12.8. Thus, in the ultimate analysis, we find that the Tribunal was right in observing that without following the principles of natural justice and without affording any opportunity to explain his case before the authority, the appellant was terminated and hence, his termination order cannot be sustained in the eye of law; and accordingly, set aside the order of termination. However, the High Court erroneously allowed the writ petition filed by the State and set aside the order of the Tribunal by observing that the action of the authorities in issuing a show cause notice and inviting a reply therefrom and the availing of such opportunity by the appellant, is in adherence with the principles of natural justice. Hence, we are inclined to set aside the order of the High Court and restore the order of the Tribunal to that extent.
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Check out this publication by my colleagues about an important employment law decision.
Is an employer’s decision to terminate truly at its ‘sole discretion’? Jillian Skinner and Tamara Ticoll’s recent blog post, republished by HR.com, discusses the significant Ontario court ruling, Default v. The Corporation of the Township of Ignace, and provides a helpful summary of the decision as well as practical insight into the ever-expanding line of case law concerning enforceability of termination provisions in Ontario. Stay informed: https://bit.ly/3PWg99k #EmploymentLaw #CanadianLaw
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