Rudner LawMarkham, ON · September 15, 2026Follow

Case Law Update: Substance Over Form – Temporary Layoff Clauses are Not Termination Clauses

In the world of Ontario employment law, the enforceability of termination clauses has become a primary battleground. Ever since the landmark decision in Waksdale v. Swegon North America Inc., employers have had to grapple with the fact that a single non-compliant termination provision can invalidate an entire termination clause, leaving employers exposed to substantial common law notice liabilities. But does this strict "all-or-nothing" rule apply to temporary layoff provisions?

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