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Employment Contracts

Update on when a company can enforce an employment contract following various corporate transactions

Jurisdiction: - British Columbia

In Yellow Pages Group v. Anderson, 2006 BCSC 518, and the cases cited therein, the Court set out the law on when a company can enforce an employment contract (including severance provisions and restrictive covenants) following various corporate transactions:  read more »

Non-competition and non solicitation clauses in employment contracts

Jurisdiction: - British Columbia - Ontario

In Lyons v. Multari (2000), 3 C.C.E.L. (2d) 34, the Ontario Court of Appeal, citing the Supreme Court of Canada's decision in Elsley v. J.G. Collins Insurance Agencies Ltd., [1978] 2 S.C.R. 916, stated that, in an employment relationship context, only in "exceptional" cases will the courts enforce a non-competition clause if a non-solicitation clause would adequately protect the employer's interests .  read more »

Update on Wallace Damages and Express Notice Provisions in the Employment Contract

In Lane v. School District 68 (Nanaimo-Ladysmith), 2006 BCSC 129, the employee was dismissed without cause and was provided with 12 months severance as per her employment contract (para. 35).

Her claim for Wallace damages was denied on that basis that, inter alia, her employment contract contained an express term regarding her notice entitlement (para. 188). This decision was issued on January 26, 2006 and has not yet received any treatment.

In concluding that Wallace damages are not recoverable where there is an express notice provision, the court in Lane followed the decision of the PEI Court of Appeal in Barnard v. Testori America Corp., 2001 PESCAD 4. Other than in Lane, Barnard has not been treated on point.  read more »

The legal standard for dismissal of a probationary employee

Jurisdiction: - British Columbia
Sector: - Manufacturing

What is the standard for dismissal of a probationary employee? In Jadot v. Concert Industries Ltd., 1997 CanLII 4137 (BC C.A.), the BC Court of Appeal made the following observations:

The standard for dismissal of a regular employee is just cause; for a probationary employee the standard is suitability: see Pathak v. Royal Bank, 1996 CanLII 2130 (BC C.A.)...In this case, Concert Industries dismissed the appellant because its officers concluded that the appellant was not a suitable candidate for long-term employment.  read more »

"Quebec court strikes down non-competition clause"

Jurisdiction: - Quebec

Lawyer Jock Climie has written a legal brief entitled "Quebec court strikes down non-competition clause", which summarizes the (English language) decision of the Quebec Superior Court in Positron Public Safety Systems Inc. v. Cardoso, 2005 CanLII 28827 (QC C.S.).