Feb 2018 Charity & NFP Law Update
On January 8, 2018, the Court of Appeal for Ontario released its decision in Nemeth v Hatch Ltd. In this case, the court considered an appeal of the dismissal of an action by Joseph Nemeth (“Nemeth”) against Hatch Ltd., his former employer, for damages resulting from the termination of his employment without cause. In its decision, the court determined that the termination clause in Nemeth’s employment contract, which did not explicitly limit his common law notice entitlement, was nonetheless legally enforceable and did in fact limit his entitlement. This Bulletin reviews this decision with regard to the termination clause, and focuses on the importance of properly drafted termination clauses for charities and not-for-profits when negotiating employment contracts with their employees.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 415.