Ontario employers have been navigating murky waters when it comes to termination language in employment contracts. Over the past few years, court decisions have repeatedly invalidated termination provisions, often due to vague wording or clauses that conflicted with the Employment Standards Act (ESA). For many, it’s felt like a moving target.

But a recent Ontario Court of Appeal decision may finally offer some clarity.

In Bertsch v. Datastealth Inc., 2025 ONCA 379, the Court upheld termination clauses that clearly and unambiguously limited an employee’s entitlements to ESA minimums. This is a meaningful shift. The Court emphasized:

• The language used must be clear and easy to interpret

• The clause must explicitly cover both “with” and “without cause” termination

• The provision must not violate ESA minimums

• The contract should clearly state that common law notice does not apply
  
  

This ruling gives employers a stronger footing when drafting or updating their employment agreements, so long as the language is precise and compliant.

What This Means for You
While this case offers some reassurance, it doesn’t mean you’re in the clear. Courts continue to scrutinize every word. We recommend reviewing your employment agreements at least once a year to ensure they reflect the most recent case law and remain enforceable.

If you’re unsure whether your current contracts meet this new standard, now is a good time to revisit them.

📩 Questions? Reach out to our team—we’re here to help you stay protected.

 hr@drivehris.com