Don’t Gamble With Termination Clauses

When you hire a new employee, you’re looking forward. You’ve arranged for new internet IDs and passwords, on- or off-site training and reviewed your onboarding process for last-minute ways to make their first day smoother.

The last thing on your mind is termination.

But when it comes to employment contracts, you can’t afford to put your business at risk by overlooking the potential vulnerability termination causes carry with them.

While you may not want to consider a time when your new hire leaves, failure to do so could mean setting yourself up for costly damages or litigation in the future.

In the recently settled Wood V. Fred Deeley Imports, the Ontario Court of Appeal ruled in favour of the plaintiff when a termination clause did not clearly detail the minimum requirements necessary to be applicable.

In law, ambiguity in a contract benefits the party who did NOT draw up the contract. As an employer, any ambiguity in the employment contract you write up has the potential to benefit the litigating employee, should they decide to take the issue before a magistrate.

For the case in question, the Court of Appeal found that Plaintiff Wood was entitled to

  • eight weeks’ advance notice of termination;
  • eight weeks of pension contributions; and
  • eight weeks of severance,

based on her employment time with Fred Deeley Imports. The courts reached the decision after reviewing the termination clause. They deemed the clause did not meet the minimum standards outlined in the Employment Standards Act.

With the damages award, the plaintiff received more than she would have had the termination clause accurately reflected the minimum requirements set out in the ESA.

Added Benefit When Partnering With a Specialized Staffing Partner

When it comes to employee termination, you can eliminate potential contract vulnerabilities by partnering with a dedicated staffing partner, especially if you have to end a contract early. When you employ a worker under the umbrella of a staffing agency, you not only get the top performers you need, you also protect your company from the potential ambiguity of termination clauses.

But the benefits of partnering with a specialized staffing partner don’t end there. Your industry expert staffing partner can help you shrink your bottom line by helping you hire people faster.

Specialized staffing partners, like Employment Professionals Canada, understand your business. They have a strong network of industry movers and shakers at their fingertips, waiting to help you find the talent you need today. If you’d rather be running your business, instead of sorting applications or reviewing employment contracts, reach out to the staffing industry experts at Employment Professionals Canada today.