08/11/2026
The Ontario Court of Appeal has provided important guidance on the interpretation and enforceability of termination clauses in employment agreements in Baker v. Van Dolder’s Home Team Inc., 2026 ONCA 568.
The Court considered whether language such as “at any time” and “for any reason” could render termination provisions unenforceable under Ontario’s Employment Standards Act, 2000. The Court rejected a purely literal interpretation, emphasizing that termination provisions must be read as part of the employment agreement as a whole.
The decision reinforces two key points for employers:
(1) Broad termination language does not automatically invalidate an otherwise compliant termination provision simply because it could, when read in isolation, produce an unlawful result.
(2) Employment agreements must preserve employees’ statutory minimum entitlements, and courts will consider the agreement as a whole when determining the parties’ objective intention.
While the decision arises from Ontario legislation, its guidance on contractual interpretation may have implications in other jurisdictions, including Saskatchewan. Employers should carefully review their termination provisions to ensure they clearly preserve applicable statutory minimums.
For guidance on employment agreements, termination provisions, or other workplace matters, contact a member of McDougall Gauley LLP’s Labour and Employment team.
Read the full article for a detailed analysis of the decision and its implications: https://www.mcdougallgauley.com/insights/any-time-employment-termination-clauses
