Alan Cofman’s Post

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Partner at Loopstra Nixon LLP

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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