Terms of settlement upheld following allegation of termination for cause

Settlement agreement supersedes after-acquired information
By Ronald Minken
|Canadian Employment Law Today|Last Updated: 07/06/2016

Termination settlements can be a good way for employers to protect themselves from liability. However, it may leave them stuck with paying out even if new information comes to light later that could provide just cause for dismissal.

In Dennis v. Ontario Lottery and Gaming Corp. the Ontario Superior Court of Justice enforced the terms of a termination without cause settlement between the employee and the employer despite the employer’s claim of termination for cause, based on after-acquired information.

In October 2012, after 13 years of employment, the employee was terminated without cause. She accepted the terms of a settlement package, which provided for, among other things, 53 weeks of salary in return for the employee signing a full and final employment release.