Where there is no error in law or improper consideration notice periods are not limited to 24 months. On the contrary, a consideration of the unique circumstances of the wrongfully dismissed worker may justify additional damages.
Limiting an employees’ entitlement to notice on termination of employment requires a carefully worded contract. Some general rules exist. If an employer wants to limit an employees’ entitlement to reasonable notice under the common law – the contract must clearly specify what the notice period is. The contract must comply with the Employment Standards Act. If the termination clause does not meet or exceed the minimum requirements of the employment standards legislation it is unenforceable.
The Employment Standards Act, 2000 of Ontario details entitlements to notice pay, severance pay, and benefits on termination of employment. While employers can minimize their financial responsibility to a dismissed employee through a well-drafted employment contract it is important that the agreement comply with the minimum requirements.