BC Court Finds That ESA Only Termination Clause is Enforceable :

In Shultz v. Prococious Technology Inc., dba,Cleardent, 2022 BCSC 1420, Justice Walkman found that the following termination clause was enforceable as it fully complied with the BC ESA.

6.3 Termination by Company Without Cause. The Company may
terminate the Employee’s employment for any reasons, without cause, uponnproviding the Employee with only the notice or payment in lieu of notice (or a combination thereof) in the minimum amount required by the British Columbia Employment Standards Act, as amended from time to time. Benefits will end on the last day worked.

6.4 The Employee understands that by complying with this Article 6.3, thenCompany satisfies its entire obligation under statute and common law tonprovide notice or pay in lieu of notice to the Employee in the event that theirnemployment is terminated. In no event will the Employee receive less noticenor pay in lieu of notice than the minimum termination notice or pay in lieu of notice they are entitled to under the British Columbia Employment Standards Act, as may be amended from time to time.

The Plaintiff did not provide the Court with any arguments as to why the actual language was unenforceable, rather they focused on the fresh consideration issue.

Can anyone out there think of any arguments that could have been made about the enforceability ? Remember this is a BC case and not an Ontario case. Please post your comments or send me an email at barry@barryfisher.ca

If you wish a copy of this case, email me at barry@barryfisher.ca