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For federal employers, the financial exposure of an invalid termination clause is significant and directly affects termination planning.
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Delaying statutory termination payments can expose employers to significant liability, including punitive damages.
Ontario courts may be increasingly willing to scrutinize equity compensation clauses using the same strict ESA-based analysis applied to termination c Read More...
Employers can protect their interests by proper drafting and proactive legal review, particularly when it comes to long-term incentive compensation.
Helpful guidance for employers: when properly drafted, unambiguous termination clauses prevent costly common law notice claims.
The Dufault v. Ignace (Township) case is yet another warning to employers that ESA compliance is not optional.
The Court ruled WestJet was not justified in dismissing an employee for cause who refused to comply with its COVID-19 vaccination policy.
The law will continue to favour employee protection when termination clauses are in question and not in compliance with the ESA.