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Not complying with severance clause can repudiate employment contract

Monday, September 18, 2017 @ 8:44 AM | By Daniel Lublin and Daniel Chodos

About 75 per cent of the employment contracts we see now include termination language spelling out how much or how little severance a dismissed employee will receive. And this number is growing. These clauses are generally not drafted to protect employees. They are introduced to reduce employers’ severance costs and exposure to wrongful dismissal claims. If the clause is properly drafted and complies with legislation, courts usually adhere to the language, no matter how oppressive it may be for a dismissed employee.

But what happens when...