Newsletter – October 2025

Court’s Findings

• The clause was broader than the statutory definition of just cause.

   

• By doing this, it attempted to contract out of the minimum protections in the CLC.

   

• Therefore, the entire termination clause was illegal and void.

   

• Since it was void, the employees (plaintiffs) received reasonable notice at common law (which is usually much more generous) instead of the limited contractual formula (2 weeks per year of service).

Key Takeaway for Employers:

• Employers can’t redefine “just cause.” Courts, not contracts, decide what qualifies.

• If a termination clause is broader than the law, the whole clause can be struck down.

• This case extends the impact of Waksdale beyond Ontario—it shows that any attempt to define “cause” risks invalidating a clause under federal law.

• The decision could affect many employment contracts across Canada.

 💡HRC Tip:

Don’t try to redefine “just cause” in your contracts. If your termination clauses are too broad or if they mention examples of what could constitute “just cause,” they could be struck down completely, leaving you on the hook for significant notice or severance. It’s important to review your contracts on a regular basis. Any clause that attempts to define or expand “cause” may be unenforceable—and very expensive if challenged in court.

“Can we really let employees go ‘at any time’?” Ontario employers have asked this for years. Li v. Wayfair Canada ULC finally answers: yes—if your clause is drafted correctly and complies with the ESA.

The Court upheld the termination provision, distinguishing it from prior rulings like Dufault and Baker, and clarified when “at any time” language is enforceable. 

Why it matters: This decision shows how a carefully worded clause can limit common law notice obligations and provide certainty for employers, even with the contentious “at any time” phrasing. 

Key takeaway: Properly drafted “at any time” clauses can limit common law notice obligations and offer greater predictability for employers.

 💡HRC Tip:

Our HRC Law team is ready for all of your questions about what the latest decision means to your employment agreements. 

Ontario has launched the Protect Ontario Financing Program (POFP) to help businesses in the steel, aluminum, and auto sectors manage cash flow pressures caused by U.S. tariffs.

The program offers government-backed loans starting at $250K, with up to 6 years for repayment, to cover essential working capital like payroll, rent, utilities, and supplier costs.

• Eligible uses: payroll, leases, utilities, insurance, supplier invoices.

• Ineligible uses: property purchases, expansions, acquisitions, or personal expenses.

If your business has $2M+ in annual revenue, 10+ Ontario employees, and has been operating for at least 3 years, this program could be a lifeline.

Read the full blog to see if you qualify.

The Ontario government has launched Protect Ontario Workers Employment Response (POWER) Centres, providing support to workers impacted by layoffs and economic changes, including U.S. tariffs.

POWER Centres build on existing programs, offering job search assistance, digital training, and re-employment supports tailored to local workforce needs. The government has committed $20 million in 2025-2026 to help workers and communities adapt to a changing labour market.

Workers and employers can access timely training opportunities, referrals, and on-site services to stay prepared for the evolving economy. 

Source.

Leslie Consulting Group (LCG) is a trusted leader in employee benefits and total rewards. Email hrcovered@lesliegroup.com for a complimentary service from the Leslie Consulting Group, exclusive to HR Covered clients.

After 33 years with his employer, one long-time employee casually mentioned he might retire. The employer assumed it was a resignation. But the court didn’t agree and awarded the employee six months’ pay.

This case is a reminder that even small miscommunications can have major consequences. Employers need to understand exactly how resignation and retirement are treated under the law.

Takeaways for employers:

Always confirm employee intentions if resignation or retirement is unclear

Document follow-up communications and update Records of Employment promptly.

Understand statutory layoff deadlines; failing to recall employees from layoff can trigger wrongful dismissal claims.

Temporary layoffs and pandemic-related disruptions don’t remove the duty to communicate clearly.

Read the full case study to see what you can’t afford to overlook.

 B.C. woman who stole over half a million dollars from two employers has been sentenced to seven years in prison.

Megan Katherine O’Gorman, 35, pleaded guilty to two counts of fraud over $5,000. While working in accounting roles between 2016 and 2018, she defrauded Refresh Financial Inc. of nearly $396,000 and a Kelowna real estate company of over $126,000. O’Gorman posed as a chartered professional accountant despite having no formal qualifications.

The court heard she made hundreds of unauthorized credit card transactions, forged cheques, and reimbursed herself for false expenses—all to fund an “extravagant” lifestyle.

Judge Andrew Tam noted her lengthy history of dishonesty-related convictions and described her offending as motivated purely by greed. O’Gorman, who has not repaid any of the stolen money, has also been banned for life from working in any role involving control over money or valuables.

This case highlights the critical need for thorough background checks, strong financial controls, and clear oversight policies to protect businesses from insider fraud.

Source.

The Nova Scotia government has announced legislative changes to strengthen support for workers injured on the job, while the Workers’ Compensation Board (WCB) plans to reduce the average employer rate in 2027 – the first cut in over 30 years.

The amendments to the Workers’ Compensation Act aim to make it easier for injured workers to access benefits, recover, and return to work. Key updates include:

• Increasing cost-of-living adjustments for benefits to 100% of the consumer price index (up to 3% annually) 

• Expanding presumptive cancer coverage to wildland firefighters and fire investigators 

• Modernizing the definition of “spouse”

• Extending the appeals period for claims from 30 to 90 days 

• Expanding survivor benefits, including payments to estates without dependents 

• Reducing the reporting window for workplace injuries from five days to two

• Clarifying that employers can access reports on functional abilities to better support recovery 

Minister Nolan Young emphasized that these changes modernize the system and provide meaningful improvements for injured workers and their families. The first comprehensive review of the WCB system in over 20 years informed these amendments, building on prior workplace safety legislation.

Pending financial sustainability, the WCB is committed to lowering employer rates in 2027, recognizing the efforts of workers, employers, and partners to reduce workplace injuries through prevention and effective return-to-work programs.

Source

 💡HRC Tip:

If you have employees who will need their wages to be raised to reflect minimum wage, you will probably have other employees wondering if they will receive an increase too. It’s important to clearly communicate whether wages will be changing for those who already make the new minimum wage. If you’re uncertain about the messaging, please contact us for a memo template that will help you communicate the change.