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Court Rules Termination Clauses Must Follow Employment Standards

7/8/2025

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Summary

Story summary

The Ontario Court of Appeal confirmed that termination clauses must comply with the Employment Standards Act, 2000 (ESA).
In the case of De Castro v. Arista Homes Limited, a termination clause was deemed illegal and unenforceable.
The clause permitted termination without notice for misconduct, undermining employee protections established by the ESA.

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Story summary

The Ontario Court of Appeal confirmed that termination clauses must comply with the Employment Standards Act, 2000 (ESA).
In the case of De Castro v. Arista Homes Limited, a termination clause was deemed illegal and unenforceable.
The clause permitted termination without notice for misconduct, undermining employee protections established by the ESA.