An employee challenged the enforceability of a termination clause in his employment contract with IBM.
The motion judge found the clause ambiguous and unenforceable, holding that it did not clearly exclude the employee's entitlement to damages at common law.
The Court of Appeal reversed, holding that when read as a whole, the termination clause was unambiguous and clearly excluded common law damages.
The clause provided for notice or pay in lieu calculated according to a formula, with a failsafe provision ensuring compliance with the Employment Standards Act.
The court found no violation of the ESA and awarded costs to IBM.