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Enforceability of “at any time” termination clauses vis-à-vis ESA minimum standards and whether such language invalidates both “without cause” and “with cause” provisions
Distinction between common-law “just cause” and ESA “wilful misconduct” and the need for clarity in employment contracts
Threshold for interventions in ostensibly private employment disputes when broader public policy is engaged
Application of Rules of Civil Procedure rr. 13.02 and 13.03(2) to grant or refuse leave to intervene
Balancing usefulness of interveners against prejudice, duplication, and fairness where multiple aligned interveners seek standing
Disposition: OCC granted leave with conditions; CACE refused, no costs, timetable and oral limits set
Background and parties
An employee’s contract was terminated on a without-cause basis. On a motion in the wrongful dismissal action, the judge held the contract’s termination language unenforceable because it allowed termination “at any time,” which was found contrary to the Employment Standards Act, 2000 (ESA), and because the “with cause” clause used “at any time” and failed to explain the difference between common-law just cause and the ESA’s higher wilful misconduct standard. The employer appealed. Two organizations—the Ontario Chamber of Commerce (OCC) and the Canadian Association of Counsel to Employers (CACE)—sought leave to intervene in the appeal. The employer consented; the employee opposed.
What the motion was about
The Court of Appeal was asked to decide whether to grant leave for OCC and CACE to intervene as friends of the court under Rules 13.02 and 13.03(2). The employee argued interventions would duplicate the employer’s case, increase complexity and cost, and risk imbalance by adding two employer-aligned voices. The organizations argued the appeal raises public-importance questions transcending a private dispute and that they could assist the court.
Key legal issues on appeal
The underlying appeal centers on whether termination provisions stating employment may be ended “at any time” comply with the ESA and how to interpret clauses distinguishing (or failing to distinguish) just cause from wilful misconduct. The Court noted prior jurisprudence and flagged that this interpretive issue has broader implications for the enforceability of employment termination clauses and for drafting practices in Ontario.
Standards for intervention
The court applies a three-part framework: nature of the case, issues involved, and whether the proposed intervener will make a useful contribution without causing injustice to the parties. While private disputes usually demand a stricter threshold for intervention, that standard may be relaxed when the issues raise broader public policy considerations.
Court’s analysis
The judge found this appeal engages questions beyond the parties’ immediate interests, including ESA remedial purposes, employee protection, and the need for clarity in interpreting termination clauses. Given their recognized expertise and roles, OCC and CACE were seen as capable of offering useful, policy-grounded submissions distinct from the appellant’s. However, permitting both risked the appearance of imbalance and overlapping arguments on one side, potentially imperilling fairness. The court determined only one intervener should be granted leave. Between the two, OCC was preferred due to its substantial and identifiable interest and expertise specific to Ontario, better positioning it to assist on provincial implications for employers and employees.
Outcome and next steps
Leave to intervene was granted to OCC with conditions: it must take the record as is; file a factum up to 15 pages by August 22, 2025; avoid duplicating the appellant’s submissions; is permitted 10 minutes of oral argument; and bears no costs. The respondent may file a 15-page supplementary factum by September 12, 2025 and will receive an extra 10 minutes to respond to OCC’s oral submissions. CACE’s motion was dismissed without costs. In the motion decision, neither Baker nor Van Dolder’s “won” outright — the ruling concerned whether third parties could intervene, and the Ontario Chamber of Commerce was the successful intervener applicant, while the Canadian Association of Counsel to Employers was refused leave.
Practical implications
The Court of Appeal signalled that seemingly boilerplate “at any time” termination language remains an open and consequential question under the ESA, warranting input from a provincial business stakeholder while guarding against stacked interventions. Employers, employees, and counsel should anticipate guidance on drafting and interpreting termination clauses once the appeal is heard, with policy considerations likely to inform the analysis.
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Appellant
Respondent
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Court
Court of Appeal for OntarioCase Number
M56047; M56058Practice Area
Labour & Employment LawAmount
Not specified/UnspecifiedWinner
Trial Start Date