Kim Kopyl was employed by Losani Homes (1998) Ltd. under a one-year fixed term contract from July 6, 2022, to July 6, 2023, at an annual salary of $150,000.
Losani Homes terminated Kopyl's employment without cause on January 9, 2023, and paid her four weeks' salary.
Kopyl argued the termination clauses in the employment contract were void as they contravened the Employment Standards Act, 2000 (ESA), claiming she was entitled to the salary for the remainder of the contract term without needing to mitigate her damages.
Key Points:
Losani Homes acknowledged the termination clauses violated the ESA but contended that this voided the entire contract, including the fixed term clause, converting the employment to one terminable upon reasonable notice.
The application judge found the void termination clauses did not affect the fixed term clause's validity, entitling Kopyl to her salary for the contract's remaining term without a duty to mitigate.
On appeal, Losani Homes argued that the invalid termination clauses should void the fixed term clause, but the Court of Appeal disagreed, affirming the application judge's decision.
Outcome:
The Court of Appeal dismissed the appeal, upholding that Kopyl’s employment was wrongfully terminated and she was entitled to payment for the unexpired contract term without needing to mitigate, awarding her costs of $7,500 for the appeal.
