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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.

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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.

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A Familiar Dispute with a Clear Message on Just Cause and Mitigation
Termination & Dismissal Krina Mahaisuria Termination & Dismissal Krina Mahaisuria

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.

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Employers Beware: Revisions to Hiring Policies May Be Needed

Employers Beware: Revisions to Hiring Policies May Be Needed

In the recent decision of Imperial Oil Limited v Haseeb, 2023 ONCA 364, the Ontario Court of Appeal restored the Ontario Human Rights Tribunal decision which found that Imperial Oil had discriminated against Muhammad Haseeb (“Haseeb”) by requiring proof of Canadian Citizenship/Permanent Residency as a condition of employment.

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