In a recent decision, the Ontario Court of Appeal addressed the complexities surrounding fixed-term contracts and termination clauses. In Kopyl v. Losani Homes, the court clarified that an invalid termination clause does not invalidate a fixed-term clause, reinforcing important considerations for employers. Let’s delve deeper into the key aspects of this ruling and its implications for employers in Ontario.
The case revolved around an employee hired under a one-year fixed-term contract, which included termination clauses. When the employer terminated the employee’s contract prematurely, a dispute arose regarding the validity of the termination clauses and the employee’s entitlement to compensation.
The employee contended that the termination clauses were void due to contravention of the province’s Employment Standards Act, 2000 (ESA). As a result, she argued that she was entitled to receive compensation for the unexpired portion of the fixed term without any duty to mitigate damages.
