K. v. American Iron & Metal Company Inc.
K. v. American Iron: Appeal Allowed, Clause Void
Appeal history
- Appeal from: K. v American Iron & Metal Company Inc., 2017 ONSC 4352 (CanLII)
Summary
This appeal addressed whether an employee waived statutory entitlements following the sale of a business and whether a subsequent termination clause was valid. The Court of Appeal allowed the appeal, finding the release could not waive ESA rights and the termination clause was void. Common law notice was assessed at seven months, but the employee ultimately received larger ESA statutory entitlements based on 35 years of continuous service.
Outcome
Appeal allowed, cross-appeal dismissed
Award
8 weeks' termination pay and 26 weeks' severance pay
Key Factors
- Employment Standards Act
- termination clause
- employee continuity
- common law notice
- restrictive covenants
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More Ontario employment decisions from 2018
This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.