Facts:
- Karen Dufault was employed as Youth Engagement Coordinator.
- Her fixed-term contract, signed on November 24, 2022, ended on December 31, 2024.
- She was terminated without cause on January 26, 2023, receiving two weeks’ termination pay and benefits.
Plaintiff’s Claims:
- Dufault sought damages for the remaining contract term, arguing the termination clause was illegal under the Employment Standards Act (ESA).
Defendant’s Position:
- The Township argued the termination clause was compliant with the ESA and Dufault was compensated correctly.
Key Issues:
- Is the termination clause enforceable?
- What are the plaintiff’s entitlements if the clause is not enforceable?
- Has the defendant fulfilled its obligations under the contract and ESA?
Legal Principles Applied:
- Employment contracts must comply with the ESA and be interpreted in favor of the employee.
- Clauses that contravene the ESA are void.
Court’s Analysis:
- The termination clauses were too broad and did not comply with the ESA, particularly regarding termination for cause and exclusion of certain statutory entitlements like vacation pay.
Decision:
- The court awarded Dufault $157,071.57 for 101 weeks of base salary and benefits, less amounts already paid.
- Damages Breakdown:
- Base Salary (101 weeks): $145,673.31
- Benefits (101 weeks): $14,567.33
- Less Termination Pay and Benefits Paid: ($3,169.07)
- Total Damages: $157,071.57
Dufault is also entitled to pre-judgment interest, with costs to be determined if not agreed upon.