In Salina v Investors Group Financial Services Inc., 2026 BCSC 1168 (CanLII)
Justice Morishita had a situation where a dependant contractor had the following termination clause:
10. TERMINATION
This Agreement may be terminated at any time by either party, with or without cause and with or without notice or any compensation in lieu of notice and, without limitation, may be terminated by [Investors Group] upon the breach by the Consultant of any of the terms, conditions or provision of this Agreement. On any termination or pending termination of a Consultant, [Investors Group] shall provide its clients with the appropriate notice.
In other words, this seemed to allow the defendant Investors Group to terminate with zero notice .
As the Judge notes, dependant contractors are not employees so they are not covered by the Employment Standards Act.
In Machtinger v. HOJ Industries Ltd., 1992 CanLII 102 (SCC), [1992] 1 S.C.R. 98 the Court cited the following as the basis for the implied term of reasonable notice:
“The presumption at common law that a contract of employment for an indefinite term is terminable only on reasonable notice would have been rebutted by the clear language of the contract specifying shorter notice periods.”
The issue then is zero notice a ” shorter notice period”
The Judge said NO.
[100] In my view, “no notice” or “zero notice” is incompatible with “some other period of notice” or a “shorter period of notice.” “Some other period of notice” or a “shorter period of notice” implies some other amount, but not nothing. Because the Employment Standards Act does not apply to Mr. Salina, the shorter notice period could have been any amount of time, even one day.
[101] Because the Termination Provision does not clearly specify any other period of notice, it does not rebut the common-law presumption of entitlement to notice and is therefore unenforceable.
What a difference a day makes.
For a copy of this case, email me at barry@barryfisher.ca
To book a mediation, go to www.barryfisher.ca
To access the Wrongful Dismissal Database go to www.wddonline.ca