Termination Clause Providing Minimum Employment Entitlements Upheld by the Court of Appeal for Ontario

Harrison Neill-MorabitoBusiness Disputes, Civil Litigation, Commercial, Commercial and Contract Litigation, Commercial Contracts, Commercial Law, Commercial Litigation, Employment, Employment & Wrongful Dismissal0 Comments

In Bertsch v. Datastealth Inc., 2025 ONCA 379, the Court of Appeal for Ontario addressed the enforceability of a termination clause through the lens of a Rule 21 motion. The appellant was terminated without cause after 8.5 months of employment. Their employment contract provided that, upon termination with or without cause, they would receive only the minimum entitlements under the Employment Standards Act, 2000 (ESA). The appellant argued the termination clause was void for potentially violating the ESA and sought damages for wrongful dismissal. The central legal issue revolved around whether the termination clause was enforceable, and more specifically, whether the issue could properly be decided under Rule 21.01. The Court confirmed that interpretive questions regarding the enforceability of a termination clause are appropriate for Rule 21 motions, which can dispose of legal issues without a full trial when the facts are not in dispute. The motion judge found no … Read More