Aug 2018 Charity & NFP Law Update
On June 22, 2018, the Ontario Court of Appeal released its decision in Amberber v IBM Canada Ltd., which case dealt with the enforceability of a termination clause within a written contract of employment. In this case, the employer, IBM Canada Ltd., successfully appealed a summary judgment where the motion judge held that the termination clause was unenforceable in precluding an employee from claiming common law damages regarding reasonable notice. The Court of Appeal, in reversing the summary judgment order and declaring that the clause was in fact enforceable, clarified certain contract interpretation principles pertaining to the termination clause. Of particular importance to the construction and interpretation of contracts was the aspect of the decision dealing with the need to read the entire clause as a whole and avoiding ambiguity when interpreting contracts. This decision is relevant to charities and not-for-profits that are seeking to enforce termination clauses in employment contracts with their employees.
For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 427.