ADMS 3420 Lecture Notes - Lecture 5: Ageism, Inequality Of Bargaining Power
4 Jun 2018
School
Department
Course
Professor
ADM“ – Chapte
Teiatio y Ageeet of the Paties
Employee Vulnerability and the Rules Governing Termination of
Employment Contracts
- Judges consider employee vulnerability in interpreting employment contracts, and fact
that most employees lak agaiig poe to egotiate up fo eployes offe.
- Wok is essetial to oes idetity, self-worth, and emotional wellbeing, as well as to
financial security.
- Couts eogize that teiatio is ost uleale tie of eployet.
- Consider whethe these isights hae shaped oo la judges deisios elatig to
termination of the employment contract
Termination by Fixed-Term or Fixed-Task Clause
- Usual right to notice of termination is forfeited in fixed-term and fixed-task contracts.
- Courts demand clear evidence that both parties intended this result.
- Employers can exploit employees by just continually renewing contracts for many years
and terminate the employee once the contract ends without notice
- Courts look at the reality of the situation ad eah paties eidee if a otat is
aiguous Ceol . Otaio Gyastis Fed minute 63)
- If the otat doest CLEA‘LY say the otat ill ed o a etai date, it ist
enforceable (e.g. The contract says it can be renewed, so it was ambiguous)
- If an employee remains beyond end of fixed term, the contract becomes indefinite and
reasonable notice of termination is required.
Golden Rule:
- If employment contract contains no valid clause specifying how much notice must be
provided to terminate a eployet otat, the the outs iply a euieet to
poide easoale otie.
- Therefore, a notice of termination clause can override the implied term requiring
reasonable notice.
- Given that reasonable notice can be much longer than the amount of notice included in a
otie of teiatio lause, hy dot all eployes ilude otie of teiatio
clauses?
Reasons Why Judges May Not Enforce Termination Clauses
1. Clause violates statutory notice provisions:
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