The plaintiff, a law clerk, was terminated without cause after 13 years of employment.
The employer provided her with her minimum entitlements under the Employment Standards Act, relying on a termination clause in her employment contract.
The plaintiff sued for wrongful dismissal, arguing the termination clause was invalid for failing to explicitly provide for the continuation of benefit plan contributions during the statutory notice period, or alternatively, that it was unconscionable.
The court held that the termination clause was legally enforceable as it incorporated the minimum statutory requirements by reference and did not attempt to contract out of the Act.
The action was dismissed.
In the alternative, the court found that had the clause been invalid, the plaintiff would have been entitled to nine months' common law notice and compensation for a lost bonus opportunity.