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November 01, 2016

Canada: The Potential Pitfalls Of Fixed-Term Employment Contracts

Article spotted by Alison Peters
Original article by Terra WelshThompson Dorfman Sweatman LLP

Originally published October 19 2016 via  Mondaq Newsletter

On October 13, 2016, the Supreme Court of Canada denied leave to appeal an Ontario Court of Appeal decision which ordered an employer to pay a former employee 37 months of salary and benefits following termination – after only 23 months of employment.

The employee in question had a written contract with a five-year term. The employer terminated the employee's employment 23 months into the contract, without alleging cause. The employer's right to early termination without cause was governed by the following provision:

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