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Appeal decision means many pre-existing severance clauses now invalid

Tuesday, March 28, 2017 @ 11:07 AM | By Daniel Lublin and Marc Kitay

It is one of the most unpredictable outcomes in workplace law – whether and when will a severance limiting clause in an employment contract be upheld or struck down by the courts?

However, as a result of a recent Ontario Court of Appeal decision in Wood v. Fred Deeley Imports Ltd. 2017 ONCA 158, both employees and employers now have some much needed clarity.  

When Harley-Davidson Canada acquired the assets of its Canadian distributor, Fred Deeley Imports, all of the employees were notified of their termination....