CONTRACT OF EMPLOYMENT - Express terms - Remuneration - Severance pay

Law360 Canada (August 3, 2018, 8:36 AM EDT) -- Appeal by the employer from a decision dismissing its motion for summary judgment and finding that the termination clause in the respondent’s employment contract was unenforceable. The respondent’s employment was terminated without cause. He then commenced an action seeking entitlement to pay in lieu of notice at common law based upon a notice period of 16 months. The termination clause provided for an all-inclusive separation payment of a maximum of 12 months’ base salary. The motion judge found that the termination provision was ambiguous, that it failed to rebut the common law presumption of reasonable notice, and that the respondent was entitled to damages at common law. She construed the inclusive payment provision as applying only to the options provision. Because the inclusive payment provision was not repeated after the concluding sentence of the clause, the failsafe provision where the employee was guaranteed the minimum standard under the Act, she held that it was not clear that the inclusive payment provision was meant to apply to the failsafe provision. It was thus ambiguous as to whether, in a case that was governed by the failsafe provision, the parties intended to exclude entitlements at common law....
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