Fixed-Term Contract & Early Termination

[Conner Lantz]

#79429

Hello Rick,
We have a supervisor that was brought on for a 1 year term that was just terminated (not for cause). He took out a 1-year lease for his lodging ans moved from Ottawa to Toronto for the opportunity. Are we at risk for the payment on his lease? It is in his name and everything, but wanting to make sure in case we owe him additional payments on his last cheque. His employment contract has no clause on this piece, hence the ask.
Thank you,
Ashley

[Conner Lantz]

#79430

In the initial contract, was there a relocation clause? Did you offer to pay for moving costs? Was there a stipend for living away from home? If none of these are the case, then no, you would have no obligation to pay his lease out.
I would caution you though to look at past emails and/or conversations to make sure that nobody made any verbal or unofficial offers to compensate the employee when he initially took the contract. There have been cases where employers were left on the hook because a manager sent a few links to rental listings and the courts interpreted this as relocation support.

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