An applicant sought a determination of rights under an employment agreement, alleging that a termination for cause provision violated the Employment Standards Act, 2000 (ESA), rendering the entire early termination clause void and entitling him to common law notice for the unexpired term of a fixed-term contract.
The court found that a valid employment contract was concluded.
While the "termination for cause" provision did not comply with the ESA due to a lower "just cause" standard compared to the ESA's "wilful misconduct," the court held that this specific clause was severable from the rest of the early termination provisions.
The "termination without cause" provision, which was ESA-compliant, remained valid and governed the early termination.
As the applicant never commenced employment and did not work for more than three months, he was not entitled to any notice, pay in lieu of notice, benefits, or severance pay under the ESA.
The court also noted that the employer's actions could be understood as negligent misrepresentation, but this was coincidental to the ESA violation.