Canada: Unfair/ Wrongful Dismissal

The Ontario Court of Appeal's decision in Wigdor v. Facebook Canada Ltd. awarded a former employee over US$4.7 million in Restricted Share Units, establishing that such benefits must continue vesting during statutory notice periods. This landmark ruling emphasizes the critical importance of statutory compliance in employment agreements, particularly following business acquisitions, and clarifies that forfeiture provisions cannot override employees' rights to contractual benefits during notice periods.

The British Columbia Supreme Court decision in Hedrick v Johnston Meier Insurance Agencies Ltd. examines when an employment contract can be terminated due to frustration, particularly after an employee develops permanent psychological injuries from workplace stalking. The case clarifies employer obligations under workplace health and safety laws and addresses when WorkSafeBC benefits may be deducted from wrongful dismissal damages.

Ontario's Court of Appeal has clarified the enforceability of termination clauses in employment agreements, addressing the growing uncertainty around contractual language that limits employee entitlements. The decision in Baker v. Van Dolder's Home Team Inc. provides practical guidance on how courts should interpret termination provisions, emphasizing a common-sense approach over technical scrutiny of hypothetical defects.

Ontario's Court of Appeal has issued a landmark decision providing crucial guidance on the application of the Employment Standards Act to equity-based employee compensation, specifically addressing whether RSU forfeiture...

The Ontario Court of Appeal has delivered a significant ruling on employment contract termination clauses, addressing whether language permitting termination "at any time" or "for any reason" violates employment standards legislation. This decision resolves years of conflicting interpretations and provides crucial guidance on how courts should interpret termination provisions in employment agreements.

The Ontario Court of Appeal has issued a landmark decision reshaping how termination clauses in employment contracts should be interpreted, moving away from hyper-technical scrutiny toward a practical, contextual approach. Through two consolidated cases, the court addressed whether common contractual phrases like "at any time" violate employment standards legislation and provided crucial guidance on drafting enforceable for-cause provisions.

Navigating employee terminations in Canada requires employers to balance complex legal requirements, common law principles, and human rights obligations. Understanding the framework for terminations without cause, for cause dismissals, and large-scale workforce reductions is essential to minimize risk and ensure compliance with applicable legislation.

Explore critical developments in Canadian employment law, from non-compete clause prohibitions and AI disclosure requirements to pay transparency mandates and evolving leave entitlements. These insights examine how recent legislative changes and court decisions are reshaping workplace obligations for employers across federal and provincial jurisdictions.

Ontario courts have long held that dismissal for cause is reserved for the most serious workplace misconduct. A recent Superior Court decision demonstrates that employers can successfully defend just cause terminations in safety-sensitive positions when they maintain clear policies, consistently enforce them, and carefully consider human rights obligations before taking action.