termination without cause

On August 2, 2018, the Supreme Court of Canada refused the plaintiff’s leave application in Krishnamoorthy v Olympus Canada Inc, 2017 ONCA 873. As such, the Ontario Court of Appeal’s ruling still stands. The ONCA held that a purchaser of assets of a business is free to offer employment on new terms to employees of the vendor and can rely on the resulting written employment agreement as binding – the employment offer constitutes sufficient consideration for the employee agreeing to the new terms. See here for more information about the case.

Nonetheless employers who seek to add or revise a termination clause should involve legal counsel in drafting the clause since such provisions must still comply with local employment standards legislation to be enforceable.

We are pleased to report that the Ontario Court of Appeal has reaffirmed the principle that a purchaser of the assets of a business is free to offer employment on new terms to employees of the vendor and can rely on the resulting written employment agreement as binding (Krishnamoorthy v. Olympus Canada Inc., 2017 ONCA 873). Continue Reading Court of Appeal Rules Termination Clause Valid on Sale of Business

One of the questions we are commonly asked by non-unionized employers is whether they should use written employment agreements with their employees. While written employment agreements are not a replacement for sound human resources planning or judgment, a well-written agreement, tailored to the specifics of the employment relationship, can be an invaluable component of successfully managing employees throughout the life-cycle of the employment relationship, beginning to end. Continue Reading Early New Year’s Resolutions: Are You Using Written Employment Agreements With Your Canadian Employees?