Ontario Court Voids CIBC Termination Clauses for 2 Workers Under Strict Canada Labour Code Test
Updated
Updated · trucknews.com · May 13
Ontario Court Voids CIBC Termination Clauses for 2 Workers Under Strict Canada Labour Code Test
2 articles · Updated · trucknews.com · May 13
Two CIBC employees won common-law notice after the Ontario Superior Court found their termination language failed Canada Labour Code minimum standards, invalidating the entire termination section.
The court said the contract’s “for cause” wording was too broad because it allowed dismissal without notice for reasons like poor performance or policy breaches that may not meet the CLC’s “just cause” threshold.
That ruling signals federally regulated employers—including trucking companies—face the same strict approach long applied in Ontario: if one part of a termination clause offends minimum standards, the whole clause can fall.
For employers, the immediate implication is to rewrite both for-cause and without-cause provisions so they track CLC language closely; even technical ambiguity can expose them to far costlier common-law notice claims.
How can businesses legally update old employee contracts after this landmark ruling?
Does invalidating entire contracts over minor wording errors create fairer workplaces?