Employment Contracts

Reasonable Notice

Employment contracts in Canada and Ontario are often much more complicated than most contracts, since special employment law imposed rules are grafted upon them. See Slater v. Sandwell(1994), 5 C.C.E.L. (2d) 308 (Ont. Ct. (Gen.Div.) and Machinger v. HOJ(1992), 91 D.L.R. (4th) 491 (S.C.C.). An employment contract exists between an employee and employer, even if it has never been placed into writing. Employment contracts are important because they let the parties determine specific terms and conditions that will govern the employment relationship. Due to the special nature of employment contracts, not all terms of the contract are enforceable by operation of law. Often employment agreements contain clauses that are not binding on the employee or the employer. Examples include improperly drafted termination provisions and other unfair or “unconscionable” terms.

​Reasonable notice is a very important concept in employment law. As explained in the article titled “Wrongful Dismissal and Just Cause”, an employer can terminate a non-unionized employee for almost any reason that is not discriminatory or reprisal against the employee. However, an employee who is terminated for “just cause”, meaning they are guilty of wilful misconduct, disobedience or neglect, is not entitled to notice of termination or pay in lieu of notice under the Employment Standards Act. If an employee is terminated without cause, the employer must provide the employee with the appropriate notice of termination, or pay in lieu of notice of termination. At the very least, the employee is entitled to the minimums contained in the Employment Standards Act. However, the employee can seek common law reasonable notice, which usually works out to a higher amount.