Termination clauses: Key legal updates and implications

Navigating termination clauses in employment contracts requires a meticulous approach, where every word holds significant weight. Each phrase can be the difference between enforceability and liability. As the legal landscape leans in favour of employees, employers face the challenge of crafting clauses that can withstand judicial scrutiny.

In a recent decision, the court found that a termination clause was inappropriate because it allowed for termination “at any time” and “at the employer’s sole discretion.” Members of our Employment Labour & Equalities Law Group discussed this new case law development. Gain valuable insights and updates on the enforceability of contractual termination clauses. Topics included:

-Legal principles regarding termination clauses
-Impact of the Court of Appeal decision of Waksdale v. Swegon North America Inc.
-New decision of Dufault v. The Corporation of the Township of Ignace
-Recommended steps for employers to mitigate risks