Client Win: Drilling Down on Severance for 30-Year Dental Employee After Practice Closure

When Rose Henderson, a loyal dental receptionist, was let go after 30 years of service, her employers tried to limit her severance with a restrictive termination clause. But thanks to the expertise of employment lawyer Lluc Cerda, Managing Partner at Samfiru Tumarkin LLP, justice prevailed. Henderson secured full severance, proving that no employer is above the law.

Here’s how this landmark case unfolded—and why it matters for both employees and employers.

The Case: Henderson v. Slavkin et al

A Career of Dedication: Henderson had been a loyal dental receptionist for three decades, working for Drs. David Slavkin and Melvyn Kellner since 1990 in their Greater Toronto Area and Bolton dental practices. At 63 years old, Henderson faced a sudden career-ending decision when her employers announced their retirement and the closure of their practice.

The 2015 Employment Contracts: In 2015, five years before her dismissal, Henderson’s employers introduced new employment contracts with a harsh clause limiting severance pay to the minimum under Ontario’s Employment Standards Act (ESA). For Henderson, who had not had a written agreement since joining the practice, this would have meant just eight weeks of pay after 30 years of service.

Faced with a tough choice—sign the new contract and receive a $500 signing bonus, or accept 24 months of working notice ending her employment—Henderson signed.

Dismissal Amid a Pandemic: Fast-forward to 2019: Slavkin and Kellner gave Henderson six months’ notice that her job would end in April 2020. This coincided with the outbreak of the COVID-19 pandemic, which shuttered dental offices across Ontario.

The Court’s Findings

Termination Clause Declared Unenforceable

Justice Carole J. Brown at Ontario Superior Court found the termination clause in Henderson’s employment contract was unenforceable because it violated the ESA. Here’s why:

• Termination Clause Was Unclear: The contract didn’t clearly explain her entitlements, such as severance pay and benefits, and suggested potential violations.
• Conflict of Interest Clause Was Too Broad: It used vague language, making it hard for Henderson to know what might get her fired. It also failed to meet the ESA’s standard that only intentional and serious misconduct can justify firing without severance pay.
• Confidentiality Clause Was Overreaching: It allowed termination for any breach, even accidental or minor ones, which goes against the ESA’s requirement for cause to involve serious, intentional misconduct.

Because these clauses didn’t comply with the ESA, the contract was invalid, and Henderson was entitled to common-law severance—a significantly higher payout than the contract allowed.

CERB Payments Not Deductible

The employers argued that Henderson’s severance should be reduced by the $10,000 she received from the Canada Emergency Response Benefit (CERB). The court rejected this request, explaining that CERB was not intended to offset wrongful dismissal damages. The ruling followed a growing legal trend, spearheaded by Samfiru Tumarkin LLP, protecting employees from having pandemic-related government support deducted from severance awards.

Search For New Job Considered Reasonable

The court also examined Henderson’s job search efforts after her dismissal. While her former employe claimed she waited too long to start looking for work and hurt her chances by relocating to a smaller job market, the court considered several factors:

• The unprecedented challenges of the COVID-19 pandemic.
• Henderson’s age and specialized skills as a dental receptionist.
• Her financial necessity to move closer to family in Southwestern Ontario.

The court determined that Henderson’s efforts were reasonable under the circumstances and reduced her severance entitlements only slightly.

The Outcome

Henderson was awarded 15 months of severance pay, reduced from 18 months to account for the six months of working notice she had already received. The court’s decision ensured that Henderson was fairly compensated for her 30 years of loyal service, despite her employers’ attempt to limit her rights with an unenforceable termination clause.

Key Takeaways

For Employees

• Understand Your Employment Rights: Never sign an employment contract without understanding its implications. Restrictive clauses, like those limiting severance, may not be legal if they breach the ESA.
• Document Your Job Search: Even in tough times, courts expect you to make an effort to find work. Keep records of applications, interviews, and professional support to strengthen your case.
• Seek Expert Advice: Cases like Henderson’s show that skilled legal representation can make all the difference. If you’ve been let go, consult a trusted Ontario employment lawyer at Samfiru Tumarkin LLP to ensure your rights are protected.

For Employers

• Compliance is Non-Negotiable: All employment contracts must align with the ESA. Failing to do so can render key clauses unenforceable, leading to costly litigation.
• Fair Treatment Matters: Offering fair severance ensures smoother transitions and avoids damaging legal disputes.
• Plan Ahead: If you’re closing a business or making structural changes, seek legal advice to navigate terminations lawfully and ethically.

We’re here to help

Facing the end of your employment can be an overwhelming and uncertain experience, especially when employers try to enforce unfair contracts or limit your severance pay. You deserve clarity, support, and a fair resolution—no matter the circumstances.

At Samfiru Tumarkin LLP, we specialize in helping employees stand up for their rights, securing strong outcomes efficiently and effectively. While most cases are resolved without going to court, we’re not afraid to take legal action when necessary. In Henderson v. Slavkin et al., our expertise ensured that our client received the full compensation she was entitled to despite her employer’s attempts to limit her rights.

Since 2007, our firm has successfully helped thousands of non-unionized employees across Ontario, Alberta, and B.C. navigate wrongful dismissals, contract disputes, and severance negotiations. Our approach combines expert advocacy, strategic guidance, and an unwavering commitment to justice.

If you’ve been wrongfully dismissed or feel your rights as an employee are being ignored, contact Samfiru Tumarkin LLP today. Let us guide you through your options and secure the compensation you deserve.