Canada: Unfair/ Wrongful Dismissal

The Ontario Court of Appeal has issued a landmark ruling clarifying that ESA-compliant temporary layoff provisions are distinct from termination clauses and remain enforceable even when other termination provisions in an employment agreement are invalid. This decision narrows the application of the Waksdale precedent and provides crucial guidance on how courts will interpret the interaction between temporary layoff rights, constructive dismissal claims, and employment contract enforceability.

This comprehensive summary examines six significant civil decisions from the Ontario Court of Appeal, addressing critical issues in cyber insurance coverage, wrongful dismissal, real estate commission disputes, and municipal election compliance. The cases establish important precedents on contract interpretation standards, successor employer liability, and the scope of public oversight in campaign finance audits.

In Esopenko v. RM of Garden River #490, 2026 SKCA 102, the Saskatchewan Court of Appeal unanimously upheld the striking of a former municipal employee’s claims because they were filed outside the one-year limitation period under s. 344(1) of The Municipalities Act.

The Court of Appeal for Ontario has resolved conflicting lower court decisions on employment termination clauses, clarifying when language permitting termination "at any time" or "for any reason" remains enforceable under provincial employment standards legislation. This landmark ruling establishes new interpretive principles that will reshape how courts evaluate the validity of termination provisions in employment agreements across Ontario's non-union workplaces.

Une décision récente de la Cour supérieure du Québec démontre les risques importants auxquels s’expose un employeur qui tente de qualifier un arrêt de travail pour raisons médicales en démission et qui persiste à soutenir...

A Québec Superior Court decision demonstrates the severe financial and reputational consequences employers face when they mischaracterize medical leave as resignation...

The Ontario Court of Appeal released multiple significant decisions during the week of August 3-7, 2026, addressing critical issues in employment law, medical malpractice, defamation, and property law. Notable rulings clarified the enforceability of termination provisions in employment contracts, particularly regarding "at any time" clauses and their consistency with Employment Standards Act minimum requirements, while also examining RSU entitlements and the application of statutory notice provisions.

Ontario's Court of Appeal has issued a landmark decision providing crucial guidance on the application of the Employment Standards Act to equity-based employee compensation, specifically addressing whether RSU forfeiture...

The Ontario Court of Appeal has delivered a significant ruling on employment contract termination clauses, addressing whether language permitting termination "at any time" or "for any reason" violates employment standards legislation. This decision resolves years of conflicting interpretations and provides crucial guidance on how courts should interpret termination provisions in employment agreements.