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Eliminating a termination clause in a contact:

Expert: Howard Levitt

Peter asked:

I have a personal services company. While in negotations for a new contract I have been offered a 5-year deal by a broadcast company. It has a clause "Contract may be terminated without cause with 12 months notice."

Since its a 5-year deal having this clause reduces it to a one-year deal and I want the clause taken out, just as the company did for my last 5-year contract with them. The Company now says its company policy.

I was employed, am now with my corporation, have been with this company for 8 years and prior to that 9 years with the company they bought out while I was in another 5-year contract.

Can you please offer advice on how I might be able to have this clause eliminated?

Howard Levitt answered:

If it's all a matter of negotiations, it's not a legal question. If there is no existing contract then it's a function of what you are able to negotiate.

It may be a legal question if you are a continuing employee, but you have no legal option if your contract has expired without a renewal clause.

About the author

Howard Levitt, Counsel to the national law firm Lang Michener. He is author of, The Law of Dismissal in Canada, The Quick Reference Guide to Employment Law and an upcoming book on Canadian Hiring Law. He is Editor In Chief of the Dismissal & Employmnet Law Digest.

Phone: (416) 307-4059
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