Termination Clauses

News & Analysis as of

Workwise: Don't Skimp on Statutory Minimums: Drafting an Enforceable Termination Clause

The recent decision of the Court of Appeal for Ontario in Wood v. Fred Deeley Imports Ltd., 2017 ONCA 158 (Wood), once again highlights that employers must be very careful when it comes to drafting termination clauses as a...more

Top 10 Issues for Employers, Issue #7: Obligations When Terminating Without Cause

This is the seventh instalment in our Top 10 Issues for Employers series. This issue addresses termination entitlements upon a “without cause” dismissal. OVERVIEW - Understanding an employee’s entitlements upon a...more

Termination Clause Enforced: Oudin and the Supreme Court of Canada

In Canada, termination clauses in employment agreements are critical tools that allow an employer to avoid providing reasonable notice of termination under the common law.  Each year there are numerous court decisions on this...more

No agreement: British Columbia Supreme Court finds termination clause in employee handbook unenforceable

In Canada’s common law provinces, employment is generally not “at will,” meaning an employee whose employment is terminated without cause is entitled to notice of termination of employment. While employment standards...more

An overriding omnishambles: Recent break clause developments

Two recent cases provide salutary lessons in how to serve break notices and also in how to draft them. The firmament of break clause cases has been so enriched in recent years with cases such as M&S and Ibrend that fanatics...more

Basic Contract Issues for New Physician Contracts

When physicians have finally completed the medical education journey, many are confronted with a “physician employment contract,” usually from a hospital or medical practice, which could define the essential terms of their...more

Sit Back and Relax – Is there a Duty to Mitigate after Termination of a Fixed-Term Contract?

The Ontario Court of Appeal recently issued its decision in Howard v. Benson Group Inc. 2016 ONCA 256, relating to the termination of a fixed-term employment contract. The Plaintiff, Mr. Howard, was a Truck Shop Manager who...more

Casting the Net Wider to Address "Too Big to Fail" - The ISDA 2015 Universal Resolution Stay Protocol

21 major global banks signed the ISDA 2015 Universal Resolution Stay Protocol at launch. Pursuant to the ISDA 2015 Universal Resolution Stay Protocol, these banks have agreed to suspend their termination rights in relation to...more

Sixth Circuit Rules in Favor of Songwriter’s Heirs in Copyright Termination Decision in Jackson Brumley et al. v. Albert Brumley &...

In its May 16, 2016 decision in Jackson Brumley et al. v. Albert Brumley & Sons Inc. et al., the Sixth Circuit expressed skepticism of the Second Circuit’s and Ninth Circuit’s interpretation of the 304(c) termination...more

The importance of signing the employment contract before starting work

In a recent decision, Holland v. Hostopia.com Inc., the Ontario Court of Appeal concluded that a termination provision in an employment agreement was unenforceable because the employment agreement was signed after the...more

Recent Developments in Korean Franchise Law

Strict Enforcement of Annual Update Registration Deadlines - Since 2008 Korean franchise law has imposed registration and disclosure obligations on franchisors. In recent years this has seen a steady increase in the...more

Termination For Repudiatory Breach: Do Contractual Notification Provisions Apply?

A party who terminated a contract for common law repudiatory breach was not obliged to follow contractual termination provisions (including as to a cure period and notice). In Vinergy International (PVT) Ltd v Richmond...more

Court finds termination clause purporting to limit a 17-year employee’s termination notice to the 8 week statutory minimum to be...

An Alberta court recently had the opportunity to consider the question of whether a termination clause was effective to take away an employee’s entitlement to pay in lieu of notice of termination in excess of the minimum set...more

The cost of ambiguity: termination clause in fixed-term employment contract ruled unenforceable

On April 8, 2016, the Ontario Court of Appeal released its decision in Howard v Benson Group[1], in which the court provides important guidance to employers in relation to the use of fixed-term contracts for employees and the...more

Breach of Confidentiality Amounted to Gross Misconduct

In Farnan v Sunderland Association Football Club [2015] EWHC 3759 (QB), the High Court considered whether breaches of confidentiality could amount to gross misconduct justifying dismissing an employee without notice....more

Non competition after termination covenants in Spain

Non-competition after termination covenants (also known as non-compete clauses) are one of the most common provisions incorporated into labor contracts in Spain, particularly in the case of senior managers’ special employment...more

The New California Franchise Relations Act: A Game Changer for Franchisors Operating in California

California will notch another franchise regulatory distinction come January 1, 2016: home to the toughest franchisee-protection law in the nation. On October 11, 2015, Governor Jerry Brown signed a bill amending the...more

Crude Oil Swap Licenses: The Top 10 Things Exporters Need to Know

Recent reports that the Obama administration authorized exports of U.S. light crude oil in exchange for imports of Mexican heavy crude have caused a stir in the industry and a fair amount of confusion in the press. The U.S....more

Employee denied bonus payment on the basis of “somewhat draconian” termination provision

In the recent Ontario Superior Court of Justice decision, Kielb v National Money Mart Company, an employee was denied a bonus payment upon termination based on the provisions of the employment contract. In the decision,...more

Continuity of Care and Provider Rights

When a health care service plan (“Plan”) or an Independent Practice Association (“IPA”) terminates its contract with a provider, enrollees have certain continuity of care rights which permit them to continue care and...more

Revisions to California Franchise Relations Act to Provide Greater Protections for Franchisees

The California Senate is putting the final touches on revisions to the California Franchise Relations Act. The law, when enacted, will increase franchisee protections against unilateral termination, provide more notice in the...more

Labor law: will employers welcome proposed changes to the Labor Code?

The Ministry of Healthcare and Social Development of the Republic of Kazakhstan developed a new draft Labor Code of the Republic of Kazakhstan. In addition to other novelties, a number of proposed amendments to the labor...more

Claims Webinar Series: Contract Terminations

In this presentation: - Termination for Convenience (“T4C’) - Termination for Default (“T4D”) - T4C vs. T4D at a glance - Brief overview of termination appeals - Q & A Please see full...more

CFPB Provides Guidance on Private Mortgage Insurance Cancellation and Termination Requirements

On August 4, 2015 the Consumer Financial Protection Bureau (CFPB) issued a compliance bulletin on the private mortgage insurance (PMI) cancellation and termination provisions contained in the Homeowners Protection Act (HPA)....more

Planning for the Unexpected: Casualty issues in Commercial Properties

PROPER BUSINESS PLANNING includes planning for unlikely but significant events such as a casualty that impacts commercial property. In part 1 of a 2 part article, we will focus on some key issues that tenants need to...more

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