Legal Blog

Termination Clause Void

Waksdale v.Swegon North America Inc. 2020 Ont CA

An employment agreement had two termination clauses: one for termination for cause without knowledge and one for termination without cause with notice. The clause for termination for cause was contrary to the Employment Standards Act and therefore void. The clause for termination without cause was not contrary to the ESA. The employer terminated with notice pursuant to the clause for termination without cause. The Court struck down that clause, even though it complied with the ESA, because it was tainted by the illegality of the other clause on which it had not even relied.

Written by Jonathan Speigel, the founding partner of Speigel Nichols Fox LLP, leads the litigation and construction practices.