Canada: Employment Litigation/ Tribunals

When an Ontario employer terminates an employee holding unvested Restricted Stock Units, can forfeiture clauses in equity agreements lawfully eliminate the employee's right to continued vesting during the statutory notice period? The Ontario Court of Appeal's decision in Wigdor v. Facebook Canada Ltd. addresses this critical question, examining whether such provisions impermissibly contract out of Employment Standards Act protections and what financial consequences employers face when equity forfeiture term

Canadian employment law faces evolving challenges as courts navigate cross-border contractor disputes, bad faith termination damages, and the potential prohibition of non-compete clauses under proposed federal legislation. Recent judicial decisions highlight critical distinctions between employee rights and contractual obligations, while examining the interplay between asset purchase agreements and employment contracts in business transactions.

A recent Workers’ Compensation Appeal Tribunal (WCAT) decision provides useful guidance on the due diligence defence available to employers facing occupational health and safety administrative penalties.

Yes. In Dome Mine Ltd. and USW, Local 7980, 2026 CanLII 78264 (ON LA), an Ontario arbitrator upheld the termination of an employee who refused a valid post-incident drug and alcohol test.

A financial planner's wrongful dismissal case against RBC resulted in over $2.5 million in damages after the bank filed an inaccurate termination notice that destroyed her career prospects. The Ontario Superior Court found the bank's conduct vindictive and its allegations of cause unproven, raising critical questions about employer obligations when reporting terminations in the investment industry.

Employment agreements are often treated as risk management tools. Employers rely on them to set workplace expectations and limit liability on termination. But an agreement only serves that purpose if it actually survives judicial scrutiny, and for the past few years, termination clause litigation in Ontario has increasingly turned on whether a court can find some theoretical reading of a clause that would violate the Employment Standards Act, 2000 ("ESA"), even where that plainly is not what the parties meant.

The Ontario Court of Appeal (“ONCA”) recently released its rulings on two conflicting lower court decisions, finally providing some clarity for employers on the enforceability of termination clauses.

The Ontario Court of Appeal has resolved a critical split in employment law jurisprudence regarding termination provisions containing "at any time" or "for any reason" language. In two consolidated appeals, the Court clarified when such provisions comply with the Employment Standards Act and under what circumstances employers can enforce contractual limitations on termination entitlements.

Le 29 mai 2026, la Cour suprême du Canada a rendu les décisions R. c. Vrbanic (« Vrbanic ») et R. c. Jacques-Taylor (« Jacques-Taylor »), qui clarifient la manière dont le délai sera évalué en vertu de l’alinéa 11b) de la Charte.