Failure to Prove Just Cause Does Not Invalidate Valid Termination Clause :

In Pirani v CIBC ( 2023 ONSC 5991) Justice Ramsay dealt with the issue where an employer alleges just cause but fails to prove this at trial , does that mean that the contract has been repudiated by the employer and therefore they are barred from relying of the without cause provision of the contract ?

This is what the judge said :

[176] Ms. Pirani argued at trial that the employment agreement was repudiated when she was dismissed for cause and, in the result, the CIBC cannot rely on the termination provision. Ms. Pirani does not plead repudiation in her statement of claim. Ms. Pirani bears the onus of establishing that the employment agreement was repudiated: Humphrey v. Mene, 2021 ONSC 2539, at para. 116. An employer’s failure to establish just cause does not disentitle an employer from enforcing an otherwise valid without cause termination provision: Humphrey, at para. 135.

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