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Yet another reminder on the importance of careful drafting of termination clauses…

By Jeff Mitchell

As if employers needed one, we now have yet another decision invalidating a termination provision for failure to comply with the Employment Standards Act 2000: Miller v ABM Canada Inc 2014 ONSC 4062 (CanLII).

Mr Miller applied for and obtained the position of ‘Director, Finance and Business Process Improvement’. Prior to commencing employment, he had signed an employment contract, which contained the following elements of ‘remuneration’: a base salary of CAD135,000 (£73,000) per year; pension contributions up to a maximum of six per cent of base salary; and a car allowance of CAD680 per month.

The employment contract contained the following provision in respect of termination without cause: ‘Regular employees may be terminated at any time without cause upon being given the minimum period of notice prescribed by applicable legislation, or by being paid salary in lieu of such notice or as may otherwise be required by applicable legislation.’ …

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