Summary: Machtinger V. HOJ Industries

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MACHTINGER v. HOJ INDUSTRIES LTD., [1992] 1 S.C.R. 986

Facts:
The appellants, Machtinger and Lefebvre, were employed by HOJ Industries Ltd. from 1978 until their discharge without cause in 1985. Both appellants signed employment contracts for an indefinite period. Machtinger’s contract contained a clause which allowed the respondent to terminate his employment without cause and without notice. Lefebvre’s contract contained a clause which allowed the respondent to terminate his employment with two weeks’ notice. The appellants were given four weeks’ pay in lieu of notice. The appellants claimed wrongful dismissal as the notice of termination was less than the notice period stated in the Employment Standards Act. Issue:
What should the termination notice period be in an employment contract, if the notice in the contract violates the statutory standards?
Results Achieved:
…show more content…
The employees’ appeal was held and damages were awarded based on reasonable notice periods. Reasonable notice is determined on each case by reviewing the employment, the length of service and the employee’s age and availability of similar employment in regards to the employee’s experience, training and qualifications. The trial judge determined they were entitled to reasonable notice of termination and that the period of reasonable notice for Machtinger was 7 months and for Lefebvre, 7 ½ months; however, this was overturned by the Ontario Court of Appeal. The Supreme Court of Canada reviewed this appeal and granted the appeal and awarded the appellants the reasonable notice period damages as noted

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