T. v EDS Canada Inc.
Enforceability of Termination Clause & Notice Period
Summary
This case addresses the enforceability of a termination clause under the Employment Standards Act, 2000, and the resulting reasonable notice period for the plaintiff. The court held the termination clause was enforceable as it complied with statutory minimums and was not ambiguous. Consequently, the claim for wrongful dismissal damages was dismissed, though the court noted that if the clause were unenforceable, the reasonable notice period would have been one year.
Outcome
Termination clause enforced; wrongful dismissal claim dismissed
Key Factors
- enforceability of termination clause
- Employment Standards Act compliance
- reasonable notice
- Bardal factors
- mitigation expenses
Related Cases
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The Court of Appeal for Ontario heard appeals regarding the enforceability of termination clauses in employment contracts under the Employment Standards Act, 2000. The court addressed whether phrases like 'at any time' and 'for any reason' invalidate without cause termination provisions and whether 'just cause' definitions broader than 'wilful misconduct' are enforceable when minimum ESA entitlements are preserved. The court allowed the appeal in B. and dismissed the appeal in Li, confirming that referential incorporation of ESA entitlements is acceptable and declining to reconsider the Waksdale precedent.
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C. v. H. et al
2026 ONSC 2194 (CanLII) · 2026-04-13Fixed-Term Termination: Unenforceable Clauses & Liability
This case involves a determination on the enforceability of termination clauses in an employment contract and the remedies available for the early termination of a fixed-term agreement. The court found the termination provisions unenforceable due to non-compliance with minimum standards, applying principles from Waksdale v. Swegon North America. Additionally, the court confirmed the employee's entitlement to wages for the balance of the fixed term, citing Howard v. Benson Group Inc., and held individual defendants jointly and severally liable alongside the corporation following a default judgment.
More Ontario employment decisions from 2011
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.