Transfer voids contract’s termination provision

|Canadian Employment Law Today

Bill Waddell was an employee with Cintas Corporation in its Ontario offices. Mr. Waddell and Cintas entered into an employment agreement containing a termination clause which provided that upon termination Mr. Waddell would be entitled to severance pay in accordance with the Ontario Employment Standards Act but not less than four weeks.

After a few years of employment, Mr. Waddell accepted a transfer to Vancouver. While there Mr. Waddell’s employment was terminated upon which he brought an action for wrongful dismissal in the British Columbia Courts.

The trial judge dismissed the action for wrongful dismissal and damages were not assessed. The case revolved around the termination clause in the contract of employment. Cintas argued successfully that it satisfied the conditions of the termination clause when terminating Mr. Waddell and therefore the termination was not wrongful. Mr. Waddell appealed this decision.