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In the recent case of Bertsch v. Datastealth Inc., 2024 ONSC 5593 (Bertsch), an Ontario court upheld a termination provision that did not specify every detail. While recent decisions suggest that such provisions may have to be flawless to be enforceable, Bertsch is a welcome decision showing that employers do not necessarily have to meet that high bar to protect themselves.

Key Takeaways

Bertsch reminds employers of the importance of including clear and compliant termination provisions in employment agreements. Ontario employers should review their agreements to ensure they meet the requirements of the Employment Standards Act, 2000 to avoid potential legal challenges. Employers should continue to confirm their termination provisions are:

  1. Clear and unambiguous to avoid disputes and potential invalidation by the courts.
  2. Compliant with the ESA and its regulations.
  3. Inclusive of language stating that compliance with the ESA and whatever other entitlements are listed in the employment agreement satisfy any common law notice of termination or pay in lieu thereof.

Bertsch demonstrates that while courts will continue to closely scrutinize termination provisions in employment agreements, employers must only ensure that the provisions are legal and unambiguous. This provides some relief for Ontario’s employers by indicating that they do not necessarily have to rely on “perfect” termination clauses that reference all scenarios and laws in their employment agreements to enforce them.

Even with this positive decision for employers, we continue to encourage all Canadian employers to assess the enforceability of termination provisions in existing employment agreements.Continue Reading Don’t Let Perfect Be the Enemy of Excellent: Ontario Court Validates Termination Clause that is Unambiguous and Legal

We are pleased to share a recent Benefits Canada article, “Employers seeking to withhold termination entitlements must prove wilful misconduct pre-planned: Ontario court,” with quotes from George Avraam. A recent Ontario Court of Appeal decision raises the bar for employers seeking to withhold minimum entitlements under the Employment Standards Act from employees dismissed for cause.…

In Render v. ThyssenKrupp Elevator (Canada) Limited Group, the Ontario Court of Appeal redefined wilful misconduct under the Employment Standards Act and confirmed the modern day approach to assessing sexual harassment in the workplace.

The Decision

Mark Render was terminated for cause after slapping a female co-worker on her behind. The trial judge found…

On April 11, 2022 Bill 88, Working for Workers Act, 2022 received royal assent, introducing significant changes to a number of employment-related statutes, and introducing the Digital Platform Workers Rights Act, 2022.

The most important changes introduced by Bill 88 include:

  • New employment standards exemptions: Certain business consultants and information technology consultants are

…

Background

On December 9, 2021, the Ontario Government filed a regulation that extended the COVID-19 Infectious Disease Emergency Leave (“Deemed IDEL“) and the temporary measures previously introduced by O. Reg. 228/20: Infectious Disease Emergency Leave under the Employment Standards Act, 2000 (the “ESA“) until July 30, 2022. Further details…

On December 2, 2021, the Ontario government passed Bill 27, Working for Workers Act, 2021, introducing significant changes to workplace laws. The most significant changes include:

  • Right to Disconnect from Work: Employers, subject to the Employment Standards Act, 2000 (“ESA”), with 25 or more employees, must have a written policy for disconnecting

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On May 21, 2021, we reported in a blog post that the British Columbia government passed Bill 13, Employment Standards Amendment Act (No. 2), 2021, which amends the Employment Standards Regulation to add a permanent and paid sick leave program. The Government did not provide details on the leave at that time. However,…

On June 4, 2021, the Ontario Government announced that the “COVID-19 Period” and the temporary measures introduced by O. Reg. 228/20: Infectious Disease Emergency Leave (the “Regulation”) under the Employment Standards Act, 2000 (the “ESA”) have been extended until September 25, 2021.

The Regulation, which was first introduced in May 2020,…

Following almost a year of uncertainty, the Ontario Superior Court finally clarified that temporary layoffs during the COVID-19 pandemic can amount to constructive dismissal under the common-law. Ontario employers should take note of this important decision if they have or are considering temporary staffing cuts, including temporary reductions in hours.
Continue Reading COVID Layoffs Can Lead to Employer Liability, Ontario Court Says