In S. v. GoSecure Inc., 2025 ONSC 0049, the Ontario Superior Court of Justice considered a situation many employees face: being terminated shortly after starting a new role. This decision is a helpful reminder that employees should not assume their severance is limited to the minimum standards under the Employment Standards Act, 2000. If an employment contract is flawed, an employee may be entitled to significantly more.
The Facts
The employee was 51 years old and worked as a Vice President of Sales for approximately 10 months. He managed a small sales team and earned a compensation package that included a $190,000 base salary plus commissions. Following a company-wide downsizing, the employee was terminated without cause, and the employer provided only one week of salary based on a termination clause that attempted to limit entitlements to statutory minimums.
Key Takeaways for Employees
An Unenforceable Termination Clause Can Lead to More Severance
A key issue in this case was the employer’s concession that the termination clause was unenforceable. The clause referred vaguely to the “Ontario Labour Standards” and failed to clearly limit the employee’s entitlement to common law reasonable notice. When a termination clause is not properly drafted, employees are not restricted to minimum standards and may instead be entitled to significantly greater compensation at common law.
Short Service Does Not Always Mean Small Severance
Many employees assume that less than a year of service means minimal severance. This case shows that is not necessarily true. Despite only 10 months of employment, the court awarded six months of reasonable notice after considering the employee’s age, senior role, and the difficulty of finding comparable work. The court also recognized that a short tenure can create challenges in a job search, particularly where future employers may question why the employment ended so quickly.
Commissions Are Part of Compensation
The court confirmed that commissions were an essential part of the employee’s compensation and should be included in the notice period. Because the employee would likely have earned commissions during those six months, the court awarded an amount based on his historical earnings. This is an important point for employees in sales or incentive-based roles, as severance should reflect total compensation, not just base salary.
The Court Did Not Accept the Inducement Argument
The employee argued that he should receive a longer notice period because he was induced to leave secure employment. The court disagreed, finding that the discussions leading to his hiring were more consistent with normal professional interaction than active recruitment. This confirms that inducement requires clear evidence that an employer actively persuaded an employee to leave stable employment, not simply that an opportunity was discussed.
What This Means for Employees
This case demonstrates that severance is not determined by length of service alone. Even where employment is brief, an employee may still be entitled to a substantial notice period if the termination clause is unenforceable and the circumstances make comparable employment more difficult to obtain. While the employee’s age of 51 was a factor, it was not the sole reason for the outcome; the court was primarily influenced by his senior position and the realities of the job market.
Employees should also remember that compensation includes more than base salary. Commissions, bonuses, and other regular earnings may form part of a severance entitlement. Before accepting any severance offer or signing a release, it is important to understand your rights and whether your contract is enforceable. As this case shows, the difference between minimum standards and common law reasonable notice can be significant.
Contact Monkhouse Law
If you were let go shortly after starting a new role, you may still be entitled to more than the minimum standards under the Employment Standards Act, 2000. Contact Monkhouse Law for a free 30-minute phone consultation to review your severance package and better understand your rights.
This blog is provided for general information only and should not be relied on as legal advice. Every employment situation is unique and requires an assessment of its specific facts.