With the provincial government looking at instituting a minimum wage of $15.00/hour, the Employment Standards Act, 2000 (the ESA) is generating headlines this week.

But one of the biggest pitfalls for employers in the ESA made judicial news at few weeks ago: the Ontario Court of Appeal further clarified employers’ obligations when terminating employees in its decision Wood v Fred Deeley Imports Ltd. (Wood) released earlier this year.

The important take-away from this case is: if the termination clause in an employment contract excludes even one obligation under the ESA the entire termination clause is unenforceable. As a result, the employee becomes entitled to common law reasonable notice discussed in more detail below. The employment clause will also be void even if the employer meets the ESA obligations that were excluded from the termination clause.

Continue reading “Employers take note: Make sure your employees’ termination clauses don’t exclude benefits and severance pay under the Employment Standards Act, 2000.”