In Chan v NYX Capital Corp ( 2025 ONSC 4561) Justice Parghi had to determine the enforceability off this termination clause:
10. Termination
Your employment with the Company may be terminated as follows:
(a) The first three months of your employment are probationary, during which time the Company may terminate your employment at any time and for any reason at its discretion, without notice or pay in lieu of notice, or other obligation.
(b) You may resign from your employment at any time and for any reason upon providing the Company with two weeks of notice in writing of your resignation, which notice may be waived by the Company in whole or in part at its sole discretion save as may be required under the ESA.
(c) After you successfully complete the first three months of your employment, the Company may terminate your employment at any time without cause, upon providing you with notice, or pay in lieu of notice, benefits continuation and severance pay (if applicable) and any other benefits or entitlements strictly required in accordance with the minimum requirements set out in the ESA. It is agreed and understood that the provision of such notice or pay in lieu of notice, severance pay (if applicable), benefits continuation and any other benefits or entitlements required under the ESA shall constitute full and final satisfaction of any claim which you might have arising from or relating to the termination of your employment, whether such claim arises under statute, contract, common law or otherwise, save any claim that cannot be released by operation of a statute of Ontario.
(d) The Company may terminate your employment at any time for cause, without any obligation to you on account of notice or pay in lieu of notice, severance pay, or other obligation, other than accrued amounts owed to the date of termination.
The Judge found this clause to be illegal for the following reasons:
- “At any time” and “for any reason ” were illegal . quoting Dufault v. The Corporation of the Township of Ignace, 2024 ONSC 1029, andBaker v. Van Dolder’s Home Team Inc., 2025 ONSC 952,.
- ” At any time for cause ” is illegal quoting Waksdale v. Swegon North America Inc., 2020 ONCA 391,
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