Wrongful Dismissal Law: The Enforceability of Settlement Agreements and Full and Final Releases

In Titus v. William F. Cook Enterprises Ltd., the Court of Appeal for Ontario canvasses the law of unconscsionability as it relates to wrongful dismissal settlements.

It identifies the following as being supportive of unconscionability:

1. A grossly unfair and improvident transaction
2. Victim's lack of independent legal advice or other suitable advice
3. Overwhelming imbalance in bargaining power caused by victim's ignorance of business, illiteracy
ignorance of the language of the bargain, blindness, deafness, illness, senility, or similar disability
4. Other party's knowingly taking advantage of this vulnerability.

Not surprisingly, the court notes that the threshold to be met is exceedingly high and confirms that settlement agreements and releases should not lightly be set aside by courts after they have been signed and agreed upon.

If you are presented with a severance proposal from your employer, you should always consult with an employment lawyer before signing a release.

Robert H. Tanha, Employment Lawyer
"You want me on your side. You need me on your side."

Equity Court Law Chambers
Woodbridge, Ontario
Serving the Greater Toronto Area
Tel: 416-706-5890
Fax: 905-851-9447
Email: robert.tanha.equitylaw@gmail.com 

* This article is provided for general information purposes and should not be considered a legal opinion.  Clients are advised to obtain legal advice on their specific situations.