Ontario Court of Appeal Ruling Means Employers Should Be Reviewing Termination Clauses in Employment Agreements
A full contingent of five judges sitting at the Ontario Court of Appeal unanimously ruled that where an employment agreement provides for a stipulated sum upon termination without cause, and is silent as to the employee’s obligation to mitigate, the employee will not be required to mitigate.
Peter Bowes had a written employment contract with his employer, Goss Power Products Ltd. (“Goss”). The employment agreement contained a sliding scale as to how much notice or pay in lieu of notice Peter was entitled to in the event that his employment was terminated without cause. The longer Peter was employed, the . . . [more]


