Client Win: Flawed BBBST termination clause secures win for team lead

In the world of employment law, termination clauses can make or break a case. That was certainly true for Mr. Alarashi, who challenged his employer, Big Brothers Big Sisters of Toronto (BBBST), over an unfair severance package—and won. With the guidance of Toronto employment lawyer and partner David Vaughan from Samfiru Tumarkin LLP, Alarashi secured a landmark victory that reinforces the rights of employees across Ontario.

Here’s how it all unfolded—and why it matters.

The Case: Alarashi v. Big Brothers Big Sisters of Toronto

Rising Through the Ranks: In April 2014, Alarashi joined Big Brothers Big Sisters of Toronto (BBBST) as a part-time, contractual program coordinator with the “Match Support Team.” Just a few months later, in July, he transitioned to full-time employment in the same role. His dedication and hard work earned him a promotion in December 2016 to Team Lead of the Match Support Team, an intermediate supervisory position that took effect in January 2017.

Fired After Funding Cuts: Despite his four years of service and steady career growth, funding shortfalls led to the elimination of Alarashi’s position. On September 6, 2018, he was terminated without cause. BBBST offered him five weeks’ salary as severance, claiming it exceeded the minimum four-week entitlement under Ontario’s Employment Standards Act (ESA) for his tenure.

Challenging A Clause: But there was a problem: the termination clause in Alarashi’s employment contract. Buried in the fine print were provisions that potentially denied him what he truly deserved under the law. Unwilling to accept an unfair deal, Alarashi turned to Samfiru Tumarkin LLP to challenge the clause—and his severance offer.

Taking on a Flawed Termination Clause

Termination clauses are the hidden battlegrounds of employment law. In Alarashi’s case, the clause had several serious flaws:

1. Ambiguous Benefits Continuation: The clause stated that group insurance benefits would continue only if “available from the insurer.” This conflicted with the ESA, which guarantees benefits continuation during the statutory notice period, regardless of insurer availability.
2. For Cause Termination Loophole: The clause allowed termination for “serious breaches” of company policies—potentially enabling BBBST to terminate employees for severe misconduct.
3. Confusion Over Severance Pay vs. Termination Pay: The clause implied employees could receive either severance pay or termination pay in Ontario, but not both. Under the ESA, eligible employees are entitled to both—not one or the other.

David Vaughan argued that these flaws rendered the termination clause unenforceable. Without a valid termination clause, Alarashi’s severance would need to be calculated under common law, which typically provides greater compensation.

The Court’s Decision: A Resounding Victory

The Ontario Superior Court of Justice agreed with Vaughan’s third argument: the termination clause’s ambiguous language was invalid. Justice Sossin ruled that Alarashi was entitled to common law severance pay in Ontario, which considers factors like years of service, age, and position to determine fair compensation.

This decision is a win for employees across Ontario. It reinforces the principle that termination clauses must be clear, unambiguous, and fully compliant with the ESA. Any employer that fails to meet these standards risks having their clauses struck down in court.

The Outcome

• Alarashi received an additional $9,033.44 in damages, reflecting his entitlement to four months’ severance pay under common law—far exceeding the initial five-week offer.
• BBBST was ordered to pay $8,000 in legal costs to Alarashi.

What This Means For You

This case highlights the importance of understanding termination clauses and their impact. Here’s how it applies to both employees and employers:

For Employees

• Read Your Contract Carefully: Don’t skim over the termination clause—it could significantly affect your rights if you’re let go. If you spot unclear or unfair language, seek advice from Samfiru Tumarkin LLP before signing.
• Know Your Rights: The ESA provides minimum protections, but you have a right to common law severance, which can result in as much as 24 month’s pay.
• Don’t Settle for Less: If you’re offered a severance package that seems inadequate, consult our employment lawyers. A poorly drafted clause may not be enforceable, as this case demonstrates.

For Employers

• Draft with Precision: Ambiguous or non-compliant termination clauses can backfire, costing you more in severance and legal fees. Ensure contracts are reviewed by an employment lawyer to comply with the ESA.
• Stay Informed: Employment laws and court interpretations evolve. Regularly updating contracts can help you avoid expensive disputes.
• Act Fairly: Employees notice when you treat them well, even during termination. Clear, legally-compliant contracts and fair severance offers go a long way in fostering trust and avoiding litigation.

We’re Here to Help

Alarashi’s case isn’t just a personal victory—it’s a legal precedent that strengthens protections for workers across Ontario. Courts are holding employers accountable for ambiguous or unfair termination clauses, ensuring employees receive the compensation they deserve when it matters most.

If you’re facing termination, don’t assume your severance package is final. Whether it’s five weeks’ pay or something much larger, Samfiru Tumarkin LLP can help you fight for what’s fair.

Since 2007, we’ve secured countless victories for non-unionized employees across Ontario, Alberta, and B.C., always championing fairness, clarity, and justice. Our team doesn’t just fight for our clients—we empower them to understand their rights and take control of their futures.

In most cases, we resolve disputes quickly and effectively without trial. But when litigation is necessary, as in Alarashi v. Big Brothers Big Sisters of Toronto, we’re ready to take the fight to court to achieve the justice you deserve.

Want to know if your termination clause holds up? Contact us today—because everyone deserves a fair shot at justice.