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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.
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.
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.
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.