In early October, Canada’s Ontario Court of Appeal issued a ruling that invalidated an employer’s termination agreement because the “for-cause” parameters did not meet legal requirements for clarity and compliance. The employee was terminated “without-cause” but claimed that, while the agreement in that section was compliant, the discrepancies in the for-cause section rendered the whole agreement invalid.
Earlier, lower courts agreed with the employer in the case Waksdale v. Swegon North America Inc., but the superior court later agreed with the plaintiff. Moving forward, the ruling implies that a released employee is potentially eligible for greater entitlements related to severance and notice of termination than outlined in a severance agreement. In short, an agreement is not valid if any part of it is not compliant with regulations – even if the non-compliant part does not apply to the employee’s immediate situation.
Takeaway: The ruling highlights the sensitivity of contracts with employees as companies determine the costs of releasing workers, regardless of cause. A review of contracts, and diligence in staying abreast of changes in this area of law, can help ensure companies, and their workers, are clear in their expectations.
Coronavirus Considerations for Businesses
US: Worker Classification Laws Further Defined
US: Federal Regulators Tighten Rules on H1-B Visas
US: Joint Employer Ruling Struck Down for Now
UK: Migration Committee Advises Review of Shortage Occupations List
UK: IR35 Tax Update – Clarifies End-User Liability When Supply Chain Fails to Pay
Spain: Government Issues New Law on Remote Working
Australia: Underpayment of Workers Prompts Fines
India: New Law Protects the Informal Workforce
Singapore: Government Tightens Requirements for Foreign Workers
This update contains general information only, and AGS is not rendering legal advice. Before making any decision or taking any action that may affect your business, you should consult qualified legal counsel. AGS shall not be responsible for any loss whatsoever sustained by any person or company who relies on this update.