Employer gets out of 7-year contract but must still provide reasonable notice

Employee breached fiduciary duty when he drew up own unenforceable contract, but employer didn’t have just cause to dismiss him

An employment contract with a generous termination clause created out of the worker’s collusion and a conflict of interest is unenforceable, but the employer still has to have just cause for dismissal. Such was the case for an Ontario casino who got out of a seven-year contract with its general manager that had no early termination clause but still had to pay six-and-one-half months’ pay in lieu of notice because it didn’t follow its own progressive discipline policy.

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