Blog

Ontario Court of Appeal Confirms RSU Forfeiture Provisions May Violate the ESA

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.

Read More
Finally, a practical and common-sense approach to termination clause interpretation

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.

Read More
Khatib v. GoEasy Ltd.: A Good News, Bad News Case for Employers

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.

Read More
Good News for Employers: Wayfair Upholds “At Any Time” Termination Language

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.

Read More
Ontario Court Confirms Enforceability of ESA-Only Termination Provision

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.

Read More
Accepting Reality: Adjusting to the changed contractual reality for employers in Ontario

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.

Read More