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

Samfiru Tumarkin LLP won $9,033.44 in additional compensation for a Toronto team lead after challenging the contract his employer relied on to limit his severance. The court also awarded $8,000 in legal costs.

Emad Alarashi had worked his way from part-time coordinator to team lead at Big Brothers Big Sisters of Toronto. When funding shortfalls led to his job being cut, he received five weeks’ salary. His employer said its contract meant it did not owe him more.

David Vaughan of our Toronto employment law team challenged that limit—and won.

The Employer Said His Contract Capped His Pay

The employer pointed to wording in Alarashi’s employment contract that limited termination payments to Ontario’s employment standards minimums. It argued that the five weeks’ salary already paid met—and exceeded—what it had to provide.

It acknowledged that the wording could be improved, but said the contract’s meaning was clear: it would follow Ontario’s minimum requirements and pay nothing more.

How Our Team Won More Severance

Our team showed that the contract could be read as promising less than the law requires. It said employees would receive termination pay “or” severance pay. These are two separate payments under Ontario’s employment standards rules, and some employees qualify for both.

The employer said it intended to pay everything required. But the judge found that the wording could also mean an employee would receive only one payment. That uncertainty meant the employer could not use the clause to limit Alarashi’s compensation.

Our team’s successful challenge allowed him to receive more compensation than what his employer offered.

Read the full decision: Alarashi v. Big Brothers Big Sisters of Toronto, 2019 ONSC 4510.

What This Means For You

• Signing a contract does not guarantee its severance limit will hold up. A review can reveal problems that mean you are owed more.
• More than the government minimum is often still too little. Five weeks exceeded the minimum notice payment in this case, but it did not settle the employer’s full obligation.

A Lesson For Employers

Good intentions can’t fix unclear contract wording. A clause limiting termination payments must clearly protect employees’ minimum rights. Here, the employer had to pay additional compensation and contribute to the employee’s legal costs.

Related client win: Our team secured 24 months’ pay for a dental hygienist after challenging proposed contracts that reduced her job protections.

Told Your Contract Limits Your Severance?

Do not assume your employer’s calculation is the final word. You could be owed significantly more—even if you signed a contract. Depending on your circumstances, severance can be as much as 24 months’ pay.

Our Ontario employment lawyers can review your contract and package, explain what you may be owed and help you take the next step.

Before you sign, always check first. Contact Samfiru Tumarkin LLP to discuss your severance.