non-disparagement clauses play in wrongful dismissal cases
Typically, a non-disparagement clause is part of an agreement between two parties in a settlement case. These clauses prohibit a former employee from making statements that could damage the company’s reputation or cause business to suffer. These clauses can be found in a variety of settings including employment contracts, settlement agreements and even severance packages. The legal debate over these clauses has been ongoing and there are many issues to consider. However, one key issue is their enforceability.
The legal area of wrongful dismissal and severance packages focuses on the relationship between an employer and its employees in a non-unionized working environment. Wrongful termination and severance package cases involve an employer terminating an employee without sufficient notice or pay, or for improper reasons.
Generally, the courts will enforce a non-disparagement clause within a settlement agreement. However, the scope and drafting of these provisions is critical to ensure they are not overly broad or found unenforceable. If a non-disparagement clause has not been drafted carefully, the court may find it is unenforceable and render the entire settlement agreement invalid.
What role do non-disparagement clauses play in wrongful dismissal cases?
A common way to circumvent this problem is to have a mutual non-disparagement clause, which requires both sides to agree not to disparage each other. While this is better than a unilateral clause, it does not offer much protection. Often, these clauses require both companies to instruct all individuals in the organization not to disparage the departing employee, which is an almost impossible feat. Instead, the best option is to promise to instruct only a limited number of individuals not to disparage the former employee. This will limit the potential for a breach and it will be easier to document that the company has fulfilled its obligations.
While the differences between a layoff and wrongful dismissal lawyer termination may seem minor, they can have significant consequences for the employee’s financial situation. For example, a layoff usually does not include severance pay and other benefits, which can be substantial. This can leave the employee with a “butcher’s bill” to pay after a layoff.
In Ontario, a non-unionized worker can be terminated at any time with or without cause as long as the employer gives adequate notice. A severance package may be in addition to the notice period or it may include a lump sum payment to compensate the employee for his or her losses. An experienced Toronto wrongful dismissal lawyer can help ensure that an employer has followed the appropriate steps when it comes to terminating employees and can assist with a claim for severance pay and other damages. For more information, contact Ball Professional Legal Corporation. This firm specializes in labour law, wrongful dismissal and employment contracts. A consultation is free of charge.