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Contract Terms Ontario

Mintz - Employment Viewpoints

Attention Ontario Employers: Ontario Court of Appeal Upholds ESA Termination Clause in Bertsch v Datastealth Inc.

In a rare but significant “win” for employers, the Ontario Court of Appeal confirmed that an employer can enforce a termination provision limiting an employee’s entitlements strictly to the minimum standards under the...more

Bennett Jones LLP

An “Exacting Standard”: the Enforceability of Termination Clauses and the “At Any Time” Conundrum

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Baker v Van Dolder’s Home Team Inc. (Baker) is the latest decision in Ontario to conclude that a termination provision permitting an employer to terminate, without cause, “at any time” is contrary to the Employment Standards...more

Blake, Cassels & Graydon LLP

British Columbia and Ontario: Two Diverging Approaches to Interpreting Termination Provisions

Overview - Employers increasingly face challenges regarding whether termination provisions in their employment agreements will be determined to be enforceable if challenged in court. As we continue to see increasing court...more

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Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

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In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ontario Court Reaffirms Importance of Clear and Compliant Language in Employment Agreements

In December 2024, the Court of Appeal for Ontario released its highly anticipated decision in Dufault v. Ignace (Township). The three-judge panel determined that the “for cause” termination clause contained in the employee’s...more

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Ontario, Canada Court Reinforces Waksdale’s Impact on Enforceability of Termination Provisions and Provides Guidance on Proving...

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In De Castro v. Arista Homes Limited, 2024 ONSC 1035, Ontario’s Superior Court of Justice (Court) held the termination provision in an employment contract was unenforceable because it defined “cause” more broadly than does...more

Bennett Jones LLP

A Clarified Approach to Exclusion Clauses in Contracts for Sale of Goods

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Exclusion clauses are a common feature of agreements of purchase and sale and other commercial contracts. While often subject to negotiation, parties sometimes proceed with standard form exclusion clauses that may inject...more

Stikeman Elliott LLP

Interpreting Exclusion Clauses in Contracts for the Sale of Goods: Important Guidance from the Supreme Court of Canada

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On May 31, 2024, the Supreme Court of Canada released its highly anticipated decision in Earthco Soil Mixtures Inc. v. Pine Valley Enterprises Inc., 2024 SCC 20 (“Pine Valley”), clarifying how contracting parties can exclude...more

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Ontario, Canada Court Finds Termination Clauses in Fixed-Term Employment Agreement Unenforceable

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In Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, the Ontario Superior Court of Justice held that the termination provisions of a fixed-term employment contract were illegal and unenforceable because...more

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Ontario Court Rules Employer's Discretion to Terminate is Shackled by the ESA

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In Dufault v. The Corporation of the Township of Ignace ("Dufault"), the Ontario Superior Court of Justice, on a summary judgment motion, found the termination without cause provision of a fixed-term employment contract...more

Bennett Jones LLP

Prompt Payment Update—Ontario Superior Court Confirms Adjudicator's Decision Is Not Final

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The enactment of prompt payment and fast-track adjudication legislation across Canada has created some uncertainty regarding the finality of an adjudicator's decision. In the recent decision of the Ontario Superior Court of...more

Stikeman Elliott LLP

Fixed in Stone - Fixed Term Remains Secure Despite Invalid Termination Clause

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The Ontario Superior Court of Justice recently released its decision in Kopyl v Losani Homes (not yet cited) (the “Decision”), providing insight into the enforceability of fixed terms in employment agreements in circumstances...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Court of Appeal for Ontario Upholds Decision That Serves as Warning Against Relying on Historical Employment Contracts

The Court of Appeal for Ontario recently released a decision that affirmed the key legal principles and considerations courts will rely on when determining the enforceability of a historically written contract that no longer...more

Stikeman Elliott LLP

“Fixing” the Term of Employment: Fixed-Term Agreement defends against Wrongful Dismissal Claim

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In the recent Steele v. The Corporation of the City of Barrie, 2022 ONSC 7245 decision (“Steele”), the Ontario Superior Court of Justice provided some insight into when longer term fixed-term contracts can be enforceable....more

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Requisitioning the Closure of Open Building Permits

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​​​​​​​Ontario courts have long wrestled with whether requisitioning the closure of an open building permit is a valid buyer requisition when made pursuant to a standard Ontario Real Estate Association (OREA) real estate form...more

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Ontario, Canada Court Decides Employment Contract’s Unenforceable Confidentiality and Conflict-of-Interest Clauses Invalidated All...

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Two years ago in Waksdale v. Swegon North America Inc., 2020 ONCA 391,  the Ontario Court of Appeal established the proper method for determining whether a termination clause in an employment agreement is enforceable. ...more

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Cineplex Awarded $1.24 Billion in Lost Synergies from Failed Cineworld Acquisition: Company’s Pandemic Response Not Out of the...

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In a highly anticipated decision, the Ontario Superior Court of Justice – Commercial List held that Cineworld wrongly terminated its arrangement agreement to acquire Cineplex, which was awarded substantial damages....more

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Ontario, Canada Court Reminds Employers it is Important to Adhere to Their Contracts’ Termination Provisions

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In Perretta v. Rand A Technology Corporation, 2021 ONSC 2111, Ontario’s Superior Court of Justice ordered an employer to pay an employee damages for reasonable notice at common law when it decided the employer repudiated its...more

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Ontario, Canada Court Finds Employee Repudiated Her Employment Contract When She Refused to Work Unless New Conditions Were Met

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In Anderson v Total Instant Lawns Ltd, 2021 ONSC 2933 (Total Instant Lawns), an employee claimed her job was terminated and sought damages for wrongful dismissal.  The employer denied the employee was dismissed and argued...more

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Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Dickinson Wright

Onerous Conditions

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In my previous blog (Volume 1, Number 2), I discussed the importance of reading contracts before signing them. As a refresher, if you sign a contract, you are generally bound by the terms of the contract even if you had not...more

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Ontario, Canada: Superior Court Determines Enforceability of Termination Clause

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The Ontario Superior Court recently issued a decision in Sewell v. Provincial Fruit Co. Limited, 2020 ONSC 4406 (Sewell), applying the reasoning set forth in the Ontario Court of Appeal (OCA) decision, Waksdale v. Swegon...more

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Ontario, Canada: In Significant Decision, Court of Appeal Analyzes Employment Agreement as a Whole When Evaluating Enforceability...

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On June 17, 2020, in Waksdale v. Swegon North America Inc., the Ontario Court of Appeal rendered a decision pertaining to the enforceability of termination provisions in employment contracts.  ...more

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Ontario, Canada: Court of Appeal Upholds Dismissed Employee’s Right to Damages for Value of Incentives That Would Have Vested...

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Whether a wrongfully dismissed employee is entitled to damages as compensation for the value of incentives that would have vested during the reasonable notice period is frequently litigated in Canada....more

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Ontario, Canada: Calculation of Reasonable Notice Period When a Contractor Becomes an Employee

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Cormier v. 1772887 Ontario Limited (St. Joseph Communications) (“St. Joseph”), 2019 ONCA 965, is an appeal from a summary judgment motion arising from the wrongful dismissal claim of a contractor who worked for St. Joseph for...more

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