skip to main content





Back to all blog posts
Jul 22, 2015

Fixed Terms – Can They Be Broken?

Employers and employees are free to contract on the terms and conditions of employment. That contract, often referred to as an employment agreement, if appropriately and properly drafted, can bind the parties in the event of what occurs on the termination of employment.

Most employment agreements have open-ended terms. That is, they are contracts of indefinite hire, subject to an early termination provision set out in the employment agreement. However, some employment agreements specify that the employee’s employment is for a "fixed term," which means it automatically comes to an end at the end of that term, unless the parties agree otherwise.

The legal issue which often arises with a fixed-term contract is that unless the language is specific on early termination, the courts may find that the liability of the employer could be not only statutory or even common law notice, but payment to the end date of the fixed-term, absent the obligation to mitigate. For this reason, employers have been reticent to enter into fixed-term employment contracts.

 

To read the full bulletin, please click here.

Most Recent Blogs

Insights FirmBlog
SCC Competition Law Class Action Decisions By Ken Clark Nov 01, 2013 On October 17, 2012, the Supreme Court of Canada heard argument in three appeals relating to the ... On October 17, 2012, the Supreme Court of Canada heard argument in three appeals relating to the certification (in Quebec, the authorization) of class actions: Pro-Sys Consultants Ltd. v. Microsoft Corporation, Infineon Technologies AG v. Option Consommateurs, and Sun-Rype Products Ltd. v. Archer...
Insights FirmBlog
Tax News Flash - Supreme Court of Canada Clarifies that Assuming Obligations “Embedded” in a Property is not Consideration for the Property By Ken Clark May 23, 2013 The decision of the Supreme Court of Canada (“SCC”) in Daishowa-Marubeni International Ltd. v. Ca... The decision of the Supreme Court of Canada (“SCC”) in Daishowa-Marubeni International Ltd. v. Canada, 2013 SCC 29, was released on May 23, 2013, reversing the decision of the Federal Court of Appeal. The issue on appeal to the SCC was whether or not the cost of certain reforestation obligations ...
Insights FirmBlog
One-man Trade and Speaking Mission to Australia March 2013 By Donald B. Johnston May 06, 2013 Between March 7th and 15th, I went to Sydney, Australia to be the keynote speaker at the UrbanGro... Between March 7th and 15th, I went to Sydney, Australia to be the keynote speaker at the UrbanGrowth NSW Annual Conference on the future of Sydney.  The conference organizers were very interested in Toronto’s experience compared to Sydney’s, particularly around densification of the City and ...