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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Do Employers Have to Provide Reference Letters? The Legal Lowdown

Ah, reference letters, those elusive pieces of paper that can make or break a job seeker’s dreams. But here’s the deal: employers are not an employee’s personal fan club. They don’t have an obligation to shower employees with praise in the form of reference letters.

Before employers start feeling like kings on a throne, let’s explore the legal and strategic considerations surrounding reference letters and how they can impact an employer’s business.

No Obligation, No Problem

Let’s start with the undeniable truth: employers are under no legal obligation to hand employees a glittering reference letter, as affirmed by the Ontario Court of Appeal (2007 ONCA 573). So employers can rest easy, knowing that you’re not compelled to write letters of recommendation for every departing employee.

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