Client Win: $157K for Ontario youth coordinator after contract cut short

Dufault v. Ignace (Township)

Samfiru Tumarkin LLP secured more than $157,000 in damages for our client, Karen Dufault, in the case of Dufault v. Ignace (Township), which was heard at the Ontario Court of Appeal (ONCA).

National Co-Managing Partner Lior Samfiru and Partner Jon Pinkus successfully argued that the termination clause in Dufault’s fixed-term contract wasn’t legally enforceable under the province’s Employment Standards Act (ESA).

SEE ALSO
• Ontario employment contracts: Everything you need to know
• ’60 days or more’: Is it an enforceable termination clause?
• Starting a new job? Here’s how an employment contract could limit your rights
• Employment Law Show: Things to never do before seeking legal counsel

What you need to know

• In November 2022, Dufault — a youth engagement coordinator at the Township of Ignace — was asked to sign a two-year fixed-term contract.
• Two months after accepting the agreement, she was fired without cause and told the termination clause in her contract only entitled her to two weeks of severance pay.
• Confident that this amount of compensation wasn’t right, she contacted Samfiru Tumarkin LLP.
• Samfiru Tumarkin LLP successfully established before the Ontario Superior Court of Justice (ONSC) that the termination clause was illegal — entitling Dufault to the balance of the fixed-term contract, which was worth more than $150,000.
• The Township of Ignace disagreed that Dufault was wrongfully dismissed and appealed the ONSC’s ruling.

The court’s decision

The ONCA agreed with the lower court that the “for cause” clause in Dufault’s contract violated the ESA and dismissed the Township of Ignace’s appeal.

As a result, the former youth engagement coordinator is owed 101 weeks of salary and benefits, totalling $157,071.57 — plus costs and interest.

WATCH: Everything you need to know about severance pay on an episode of the Employment Law Show.

Certain provisions can’t simply be ignored

The Township of Ignace tried to argue that, if the termination clause in Dufault’s agreement wasn’t completely legal, the court should ignore the illegal parts.

Citing a key precedent known as the Waksdale decision, the ONCA ruled that one illegal provision made all of the termination terms in her contract invalid.

Key takeaways for employees

• Seek legal advice before signing an employment contract: A common misconception is that Ontarians need to accept a job offer immediately. In many cases, these agreements take away key protections that would otherwise available to non-unionized employees. An experienced employment lawyer at Samfiru Tumarkin LLP can review the contract and make sure that your rights are properly protected.
• Double-check your severance entitlements: Dufault’s case highlights the importance of getting a second opinion on your severance package. If you’re fired or let go, use our firm’s free Severance Pay Calculator before accepting an offer from your employer. If the offer falls short of what our calculator says you’re owed, connect with a member of our team.

Key takeaway for employers

• Sloppy employment contracts will cost you: Instead of finding out in court that certain provisions, such as a termination clause, are illegal, you’re better off contacting an experienced Ontario employment lawyer at Samfiru Tumarkin LLP. We can confirm that all of your agreements adhere to ESA guidelines.

Other client wins to check out

• 7-year Ontario contractor secures substantial severance package
• Full severance for Ontario dental receptionist despite termination clause
• Ontario ‘road boss’ constructively dismissed, awarded over $320K
• Office admin awarded nearly $85K in wrongful dismissal case
• Ontario welder sparks justice after 36 years of service snuffed out

Workplace issue? Contact us

Since 2007, the experienced employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals resolve their workplace issues.

Whether you’re in Ontario, Alberta, or B.C., our lawyers can review your situation, enforce your rights, and ensure that you receive the compensation you deserve.