Thursday, August 22, 2013

A carefully drawn employment agreement can exclude the usual damages for wrongful dismissal

Shekhdar v. K & M Engineering and Consulting Corporation, 2013 ONCA 521:

[2]          On the trial judge's finding, the agreement of April 25, 2001 governed the working relationship between the appellant and the respondent, K & M Engineering throughout the relevant time period.  That agreement provided for termination for "any reason whatsoever or no reason on 15 days' prior written notice."

[3]          The trial judge found that the appellant did not breach the terms of his agreement with K & M Engineering and Consulting Corporation at least to the extent that K & M Engineering and Consulting Corporation was entitled to terminate the contract without any prior notice.  The trial judge further found, however, in accordance with the language of the agreement that K & M Engineering and Consulting Corporation was entitled to terminate the working relationship with the appellant for "any reason" or "no reason" upon 15 days' written notice.

[4]          The trial judge's interpretation of the clear language of the agreement is unassailable regardless of whether the appellant is characterized as an employee or an independent contractor.  In accordance with the termination provision in the contract, the trial judge awarded damages in the amount of $3,789.93.