According to a recent case out of Ontario, terminating an employee in June could lead to larger damage awards:
In light of recent news concerning airline employees suffering from mental illness, should employees be required to disclose known disabilities?
Normally, when an employee on a fixed-term employment contract is terminated early, the employee is entitled to damages for the income he or she would have received for the balance of the contract had it not been terminated early. According to this decision out of Ontario, that may not be the case. When the court found a termination provision to be unenforceable, the employer successfully argued that the employee should be entitled only to reasonable notice of termination instead of the balance of the five year contract. Why? Because the parties included an early termination provision, it was clear that something less than the balance of the contract should be awarded if the agreement was terminated early. It was not the parties’ intentions to award damages for the balance of the contract:
Sean Bawden with another interesting post about reconciling the duty to mitigate with summary judgment in wrongful dismissal cases: