Termination payment of ‘salary’ in breach of ESA: Appeal court

Provision calling for salary paid in event of termination neglected to include car allowance and benefits
By Ronald Minken
|Canadian Employment Law Today|Last Updated: 10/09/2015

Sometimes one word can be the difference between a valid contract and one that gets thrown out.

On Feb. 25, 2015, in the case of Miller v. A.B.M. Canada Inc., the Divisional Court of Ontario upheld a Superior Court of Justice decision to strike down the termination provision of an employment agreement because it did not include all the compensation to which the employee was entitled during the notice period. The termination provision was found to be contrary to the Ontario Employment Standards Act, 2000, as it only provided for salary during the notice period, but not benefits, car allowance or pension participation.