Fixed-term contract clause in Ceccol v. Ontario Gymnastic Federation

question 1

An employer wants to remove a term in the contract of two employees that requires payment of an annual bonus to the employees. Employee A, concerned that refusing the employer’s request will have negative ramifications for his job security, agrees to the change. Employee B refuses the modification, saying that he likes the bonus and does not want to give it up. The contract of both employees permits the employer to terminate the contract by giving three months’ notice. Explain how the employer can modify the contract in both scenarios so that the modification is legally enforceable.

question 2

If an employment contract term specifies that the contract operates from January 1, 2015 to December 31, 2015, must the employer provide notice of termination to terminate the contract?

question 3

On what basis did the court refuse to enforce the fixed-term contract clause in Ceccol v. Ontario Gymnastic Federation?

question 4

Explain the tests applied by the courts when considering the following two arguments for non-enforceability of a notice of termination clause: (1) unconscionable contract term and (2) the changed substratum doctrine.

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