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.
A Familiar Dispute with a Clear Message on Just Cause and Mitigation
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.
Inducement and Termination: What Employers Need to Know – Lessons from Miller v. Alaya Care Inc
Employers should be mindful of the legal risks associated with recruiting employees away from secure, long-term positions. Where an employee is induced to leave stable employment to join a new organization, courts may take that inducement into account when assessing reasonable notice upon termination.
When Can Long-Term Disability Legally End an Employment Relationship?
Employment contracts are typically built on the expectation that both the employer and employee can fulfill their mutual obligations. But what happens when unforeseen circumstances, like a long-term disability, prevent an employee from continuing to work? In such cases, the legal doctrine of frustration of contract may come into play.
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.
CRA Clarifies Reporting for Employment Settlements
In 2023, the federal government broadened the scope of reportable transactions under mandatory disclosure rules, sparking considerable concern among employment lawyers about how these changes might affect settlement agreements involving general damages and the associated reporting requirements to the Canada Revenue Agency (CRA). This article provides an update on these concerns in light of the federal government's recent clarifications.
Court of Appeal Sends Expensive Message to Employer For Termination Post-Medical Leave
The recent decision of Krmpotic v. Thunder Bay Electronics Limited, 2024 ONCA 332, involves an employee with 30 years of service that was terminated the day he returned from a medical leave following back surgery.
Refusal to Vaccinate Can Lead to Frustration of Contract
In Croke v. VuPoint System Ltd., 2024 ONCA 354, the Ontario Court of Appeal upheld a lower court ruling dismissing a wrongful dismissal claim by an employee who was terminated after refusing to comply with a vaccination policy.
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.
The Side Effects of Moonlighting During Working Hours
With the increase in remote and hybrid work arrangements, employers are increasingly being faced with situations where employees have taken on “side hustles” or “side gigs.” In Dove v Destiny Media Technologies Inc., 2023 BCSC 1032, the Supreme Court of British Columbia found that an employer had “just cause” to terminate a full-time employee who worked on a side business during working hours.
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.
Enhanced Protections for Remote Workers and Increased Fines under Bill 79
On March 13, 2023, the Minister of Labour, Immigration, Training and Skills Development announced proposed amendments to the Employment Standards Act, 2000 (the “ESA”) and other related statutes under Bill 79, the Working for Workers Act, 2023. This is the third iteration of this Act responding to the changing realities of the modern workplace, principally in light of the COVID-19 pandemic.
Morey v. C.A.T.
Congratulations to our Rachel Goldenberg on her trial victory in successfully defending a constructive dismissal claim based primarily on an alleged material change in compensation.
Single Act of Sexual Misconduct Cause for Termination (But Not Willful Misconduct)
In the recent decision of Render v ThyssenKrupp Elevator (Canada) Limited, 2022 ONCA 310, the Ontario Court of Appeal upheld the decision to terminate a manager for cause for a single act of sexual misconduct.
