Exclusive to Canadian HR Reporter from Rudner Law.
Employers are often left wondering whether the termination clause in a contract will eventually be enforceable or not. This is because employment law is ever-evolving, and termination clauses are the hottest dish being served on the litigation table. Just like you never really know whether a hot dish is going to burn your tongue, you never truly know whether a termination clause will be unenforceable.
In a recent Ontario decision, Pirani v CIBC, the court addressed the following issue: if an employer failed to prove their allegation of just cause at trial, does that mean they repudiated the employee’s employment agreement? And in turn, would the employer be barred from relying on the contract’s termination without cause provision?