Termination clause upheld – 2 years' work, only 2 weeks' wages

Despite the fact the termination clause would not have met legislative minimums over a longer period of time, it did meet the minimums at time of termination
By Ronald Minken
|Canadian Employment Law Today|Last Updated: 04/21/2015

There is much debate about the enforceability of termination clauses in employment agreements and hiring letters. Whether a termination clause will be enforced depends on many factors including the wording of the clause, how it was implemented, how long an employee was employed prior to termination, their total compensation at the time of termination and, to a large extent, who is interpreting the clause.

In Shapka v. Interbase Consultants Ltd., the Ontario Superior Court of Justice Small Claims Court analyzed the facts surrounding the termination clause in the employee’s contract of employment and determined it was valid and enforceable leaving the employee only statutory notice of two weeks.