Blog
Ontario Court of Appeal Confirms RSU Forfeiture Provisions May Violate the ESA
The Ontario Court of Appeal's decision in Wigdor v Facebook Canada Ltd., 2026 ONCA 572 is an important reminder that equity compensation arrangements must comply with the Employment Standards Act, 2000 ("ESA"). The Court of Appeal held that provisions preventing restricted stock units ("RSUs") from vesting during the statutory notice period violated the ESA and were therefore unenforceable.
Finally, a practical and common-sense approach to termination clause interpretation
In a significant win for employers, the Ontario Court of Appeal has upheld the enforceability of termination clauses in Baker v. Van Dolder's Home Team Inc.; Li v. Wayfair Canada ULC. 2026 ONCA 568, rejecting the increasingly technical approach that has dominated termination clause litigation in recent years. Both of these cases came before the Court of Appeal to seek judicial determination, in part, on whether the phrases “at any time” or “for any reason” invalidated a termination clause.
Khatib v. GoEasy Ltd.: A Good News, Bad News Case for Employers
The Ontario Court of Appeal’s decision in Williamson v. Brandt Tractor Inc., 2026 ONCA 272, is a familiar wrongful dismissal dispute, but one that highlights issues employers and employees continue to face: the high threshold for just cause, what mitigation truly requires, and how courts treat post‑termination earnings.
Ontario Court of Appeal Clarifies When Employers Own Employee‑Created Copyright
Employers may wish to review their employment agreements, job descriptions, and IP protection strategies to ensure they are aligned with current legal expectations.
Good News for Employers: Wayfair Upholds “At Any Time” Termination Language
Employers in Ontario have faced challenges with termination clauses in employment agreements, particularly when using phrases like “at any time,” which courts have sometimes found to violate the Employment Standards Act (ESA). However, in Li v. Wayfair Canada ULC. (2025 ONSC 2959), the Ontario Superior Court upheld a termination clause using that exact phrase, offering positive news for employers. This decision provides clarity on enforceability and signals a shift that could impact how employment contracts are drafted moving forward.
Ontario Court Confirms Enforceability of ESA-Only Termination Provision
Employers and employees in Ontario have long been permitted to contract out of common law notice entitlements, provided their agreements meet or exceed statutory minimums under the Employment Standards Act, 2000 (ESA). However, in recent years, courts have closely scrutinized termination provisions, leading to increased uncertainty for employers.
The recent Ontario Superior Court of Justice decision in Bertsch v. Datastealth Inc., 2024 ONSC 5593, provides welcome clarity, reaffirming that properly drafted termination provisions will be enforced—even when they limit an employee’s entitlements to ESA minimums. The decision also demonstrates how employers can use procedural tools like Rule 21 motions to resolve contractual interpretation disputes efficiently.
Termination Provisions Scrutinized in Dufault Case
A recent decision of our Superior Court out of Thunder Bay has caught our attention (and the attention of most employment lawyers) as another example of the court broadening the application of the Ontario Court of Appeal’s 2020 Waksdale case.
Time to Revisit Your Company’s Vacation Policy…
Vacation entitlements in Ontario can be tricky because of the minimum entitlements in Ontario’s Employment Standards Act, 2000 (“ESA”) and the reality that many employers provide a greater right or benefit than the ESA minimums.
Employers, Review Those Employment Agreements!
Since the 2020 decision in Waksdale v Swegon North America Inc., 2020 ONCA 391 (“Waksdale”), it has been more difficult for employers to argue the termination provisions in their employment agreements are enforceable.
Hiring a Remote Worker Living Outside of Ontario? Read This First
Remote work continues to be a commonplace work arrangement in the post-COVID-19 world. During the COVID-19 Pandemic, many individuals living in Ontario left urban centres for rural parts of Ontario, and some left the province altogether.
Accepting Reality: Adjusting to the changed contractual reality for employers in Ontario
The Court of Appeal’s decision in Waksdale v. Swegon North America Inc., 2020 ONCA 391 will not be heard by the Supreme Court of Canada. The case remains the leading authority for interpreting termination provisions in employment agreements in Ontario.
Update on Employment Contracts
We have seen quite a few legal developments in 2020 from our highest courts with respect to the employment relationship and employment contracts in particular.
Location, Location, Location.
While the idea of working from a sunny (COVID-safe) remote island is tempting, companies will have to take a number of factors into consideration before permitting workers to work outside of Ontario.