Human Resources Director Canada published an online article by Ronald Minken and Tanya Sambi, September 17, 2025:
“Termination clauses vs. equity compensation: under appeal”
Written by Ronald S. Minken and Tanya Sambi
Clear restrictive language in an incentive compensation plan can hold up, even with an unenforceable termination clause
Ontario courts continue to scrutinize termination clauses in employment agreements and, more often than not, they’re striking them down. However, when it comes to restrictive language in equity compensation plans, a recent court decision drew a firmer line in favour of employers.
Related Topics
- Termination Clauses vs. Equity Compensation: Under Appeal
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- Supreme Court of Canada Ruling in Dufault v. Municipality of Ignace Stands: ESA Compliance in Termination Clauses Is Non-Negotiable