Ontario Appeal Win: Youth Coordinator Keeps $157,000 Award After Contract Cut Short

Samfiru Tumarkin LLP protected a $157,071.57 court award for an Ontario youth engagement coordinator whose employer ended her contract early and said she was owed only two weeks’ pay.

Karen Dufault had signed a two-year employment agreement with the Township of Ignace. About two months later, the township dismissed her. Our team challenged the contract wording it relied on to limit her payout and secured compensation for the remaining term.

When the township appealed, employment lawyers Lior Samfiru and Jon Pinkus defended Karen’s win. The Ontario Court of Appeal dismissed the appeal and ordered the township to pay an additional $15,000 toward her appeal costs.

The Township Said Its Contract Limited What Karen Was Owed

The township argued that its contract followed Ontario’s employment standards and that Karen had already received the minimum pay she was owed.

On appeal, it also argued that even if one part of the contract was invalid, the court should leave the other termination terms in place.

That mattered because Karen had been dismissed without cause. The township wanted the court to preserve the wording that limited payment for that kind of dismissal, even if the separate wording about misconduct was unlawful.

Our team’s position was that the township could not rely on those terms to cut short its financial commitment to Karen.

Why The Contract Didn’t Limit Karen’s Payout

Karen’s contract said she could lose her severance for failing to do her job properly. That went further than Ontario law allows.

The township asked the court to ignore that wording and keep the other limits on her payout. The court refused.

Karen could claim pay for the rest of her contract—not just two weeks.

Our Team Protected Karen’s $157,000 Award

The Court of Appeal upheld the original award on December 19, 2024.

Instead of being limited to two weeks’ pay, Karen kept her award based on 101 weeks of salary and benefits remaining under the agreement.

Read the full appeal decision: Dufault v. Ignace (Township), 2024 ONCA 915.

What This Means For You

• A contract ending early can lead to a substantial payout. If your employer can’t rely on a valid early termination clause, you are likely owed compensation for the remaining term.
• Signing a contract does not make every term enforceable. Your employer can’t use an agreement to take away Ontario’s minimum employment protections.
• The whole agreement needs a review. Wording about dismissal for misconduct can affect your payout even if your employer is not accusing you of doing anything wrong.
• Do not assume your employer’s calculation is the final answer. Have your contract, termination letter and proposed payment reviewed before signing a release.

A Lesson For Employers

An invalid termination clause can turn a small planned payout into a much larger obligation. Our employment lawyers can review agreements before they are signed and assess the risks of ending a fixed-term contract early.

Another contract-related client win: See how our team helped an Ontario dental receptionist secure full severance despite a termination clause.

Has Your Employment Contract Been Cut Short?

Before you sign, always check first. A small termination payment may not reflect the value of the contract your employer ended.

Our Ontario employment lawyers help employees in Ignace, across northwestern Ontario and throughout the province understand what they may be owed.

Your severance could be as much as 24 months’ pay. If you have a fixed-term agreement, the remaining value of that contract may determine your compensation instead.

Many employment disputes can be resolved without going to court. When an employer challenges a court award, Karen’s case shows how our team can defend the result and protect the compensation our client has won.