Contract Limit on Without Cause Termination Notice Is Enforceable

Is a contract clause allowing a firm to terminate a manager without cause upon 60 days’ notice without a discretionary bonus and paying only the notice due under the province’s employment standards law enforceable? In this particular case, the Saskatchewan court said yes. The clause was clear and unambiguous, the court explained; it didn’t violate the termination notice rules of the Sask. Employment Act; and the 52-old-manager was a sophisticated businessman who negotiated other elements of the compensation package but accepted this clause without negotiation [Pederson v Brandt Developments Ltd., 2021 SKPC 35 (CanLII), June 15, 2021].