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Don’t Lose Your Enforceable Termination Clause to the Substratum Doctrine

If you’re an employer or HR representative well-acquainted with the realm of employment law blogs, you’ve undoubtedly encountered a myriad of cautionary tales about the perils of contracting errors.  The blogs about this topic are countless – and for good reason! The significance of getting contracts right cannot be overstated, as a single mistake could potentially lead to substantial liabilities for your organization. An omitted phrase or a misused word within a termination clause could be the deciding factor between an 8-week statutory notice obligation and a hefty 24-month damages award.

The significance of getting contracts right

However, let’s assume that you’ve taken every precaution. You’ve carefully reviewed your contracts, consulted legal experts, and you’re confident that your termination clauses are impeccably drafted. Is there still a risk that a court would refuse to enforce that termination clause?  The answer, perhaps unsurprisingly, is yes.  Even with meticulous drafting, there’s a legal principle that could potentially invalidate your termination clause – the Substratum Doctrine.

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“Loud Quitting” – How Employers Can Manage this Trend

Loud Quitting” - How Employers Can Manage this Trend

Back in September, we delved into the issue of “quiet quitting” and discussed how employers can manage their quiet quitting employees. Recently, we’ve seen a new, flip-side, trend of employee’s “loud quitting”.

No employer wants a disgruntled employee making a dramatic exit from their workplace and potentially spewing ill words about the workplace. So, here are some legal tactics for employers to mitigate potential damages to their company or reputation related to loud quitting employees. 

What is Loud Quitting?

“Loud quitting” refers to an employee making a very public and disruptive departure from their job, often with the intent to call attention to perceived injustices or mismanagement at their workplace. This can take various forms, such as dramatic farewell emails, social media posts, public speeches, or even videos. While these methods may give an employee a sense of vindication or catharsis, they can potentially cause damage to a company’s reputation and morale among the remaining employees.

 

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