ONCA Overturns Rahman v Cannon Design Architecture Inc

Employee's Level of Sophistication Has No Bearing on Enforceability of Termination Clause

News/
8 June 2022
Share
Share with your friends and colleagues
Pick one or more destinations:

The ONCA released its decision in Rahman v Cannon Design Architecture Inc, 2022 ONCA 451 this morning. The Court overturned the lower court's decision, which upheld an otherwise illegal termination provision because the employee sought legal advice prior to signing her employment contract. 

The Court reasoned:

[24] In my view, the motion judge erred in law when he allowed considerations of Ms. Rahman’s sophistication and access to independent legal advice, coupled with the parties’ subjective intention to not contravene the ESA, to override the plain language in the termination provisions in the Employment Contracts. By allowing subjective considerations to distort and override the wording of those provisions, the motion judge committed an extricable error of law reviewable on a correctness standard: Amberber v. IBM Canada Ltd., 2018 ONCA 571, 424 D.L.R. (4th) 169, at para. 65. It is the wording of a termination provision which determines whether it contravenes the ESA – even compliance with ESA obligations on termination does not have the effect of saving a termination provision that violates the ESA: Wood v. Fred Deeley Imports Ltd., 2017 ONCA 158, 134 O.R. (3d) 481, at paras. 43-44.

As a result, the termination provision was set aside and the Plaintiff is entitled to reasonable notice. 

Congratulations to Stephen Moreau and Kaley Duff for their work in achieving this excellent result for Ms. Rahman. 

Recent News

In the News/27 October 2026

Mental Health Nurses Gain Additional Protection from Workplace Violence in Interim Order

OLRB orders increase of security personnel to reduce the risk and severity of workplace violence

On October 19, 2026, the Ontario Nurses’ Association (ONA) was granted an Interim Order by the Ontario Labour Relations Board designed to reduce the l... Read More
Firm News/27 October 2026

Cavalluzzo LLP Recognized in Best Law Firm Rankings 2027

Ranked in Labour and Employment, Administrative and Public Law, and Appellate Practice Nationally, and Seven Practice Areas Regionally

We are pleased to announce that Cavalluzzo LLP has been recognized in the 2027 edition of the Best Law Firms - Canada. The firm was ranked in three pr... Read More
News/14 October 2026

Coalition intervenes at Supreme Court tomorrow in case challenging Ontario government’s treatment of Ontario Place

SCC will decide whether a government can shield its decisions from existing laws and court review and whether Ontario Place is a protected “public trust”

On October 15, 2026, a coalition of four citizen organizations – Ontario Place for All (OP4All), Toronto Field Naturalists, Democracy Watch, and the ... Read More