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What Mississauga businesses owners need to know about termination clauses in employment contracts?

termination-clauses-in-employment-contracts

When a business hires a new employee, everyone hopes it will be a long and fulfilling relationship. However, in some cases, the employee is not the right fit for the organization, doesn’t fulfill job responsibilities, or performs actions that are simply incompatible with remaining in the job. For these reasons, it is important for employers to have termination clauses in their employment contracts. Gary Bennett of GAB Law Firm in Mississauga helps his clients create contracts that protect their businesses while being honest and transparent to manage employee expectations.

What are termination clauses?

A termination clause is an agreement between the employer and the employee which explains how much salary and benefits the employee will receive when the employment contract is terminated. Termination clauses must be drafted carefully and according to very specific guidelines in order for them to be upheld by a judge in a court of law.

Why do businesses use termination clauses?

Employers use termination clauses to limit the amount of money they must pay when terminating employees. They also rely on termination clauses when providing employees with certainty and clarity about the compensation they will receive in advance of their employment being terminated. Without a termination clause, employer’s are often penalized and held liable to pay employees the maximum amount of compensation when the employee’s employment is terminated.

However, employers must follow the law when drafting termination clauses. Courts will not enforce a termination clause unless the employee is provided with the minimum entitlements prescribed by the provincial or federal employment standards. Even if an employee has voluntarily signed a contract and agreed to the terms a court has the power to compel an employer to provide more compensation to the employee to ensure that the employee receives the minimum entitlements prescribed by law. Due to recent changes in the law, every employer should have their termination clauses reviewed by an experienced employment lawyer to ensure that they are enforceable and protect the business.

For more information about termination clauses or other human resources matters, call Gary Bennett at (365) 800-2090. Gary represents many employees and employers, affording him insight into the needs of all his clients.

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Testimonials

Saad M. "I reached out to Mr. Bennett for career mentoring, to which I received passionate mentor-ship with no self-interest of his own, but rather a commitment and a desire to see young legal-professionals grow. My experience with Mr. Bennett has led me to conclude that he is very knowledgeable and a master of his craft, willing to go above and beyond to assist those in need."
JZW "I met Gary by chance when I just planned to start my own practice. During the year, what Gary offers me is more than a mentor can do, real supports as a friend indeed, precious and knowledgeable legal advices and sharing experience in legal practice. And most importantly, he is a such nice and friendly lawyer and you will never regret to meet him. Highly recommend!"
Sherilshops "Knowledgeable, Professional, Empathetic. If you are looking for an experienced professional that listens to your concerns and has the knowledge and the ability to get results this is the Law Firm that you need. I would highly recommend them."
Chris C. "GAB Law Firm is the benchmark for other employment lawyers. The team is very knowledgeable in their area of expertise and they were empathetic to our situation. Gary was able to help us during a tough time and became our voice against a large company that was trying to intimidate and take advantage of us. I would recommend contacting GAB Law Firm 10 times out of 10!"
Abraham L. "I have had a working relationship with Gary Bennett for over 10 years. During that time he has helped me navigate the pitfalls of employment and staff with sound advice and services. While working with a lawyer can often feel daunting, and the legal system overwhelming, Gary Bennett and his staff at GAB have always taken a very personal approach helping me get through legal challenges that all business owners encounter. Gary and the team at GAB have always come through and I consider them an essential part of my business team."
Vanessa K. "Gary is very knowledgeable and passionate about his work. He is very helpful and extremely professional. Definitely would recommend Gary to anyone in need of his services."