Refusing to Pay Contractual Severance Without a Release Nullifies the Termination Clause :

In Timmins v. Artisan CellsĀ ( 2024 ONSC 7123 Justice Callaghan had s situation where the employment contract called for a payment of 3 months pay upon a without cause dismissal. The contract did not require the employee to sign a release.

The employer refused to pay that amount unless the Plaintiff signed a release, which he refused to do. The employer then only paid one week of termination pay, even though the ESA minimum entitlement was 3 weeks.

The Court found that the employer had repudiated the contract and therefore could not rely on the termination clause. The Plaintiff was therefore entitled to common law reasonable notice.

The Court then awarded 9 months notice to the 44 year old Vice President who had 3. 5 years service.

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